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62 Encyclopedia INDICES 



United Nations (UN), 9-10, 22, 38-9, 42, 47-8, 53-4, 118-9, 

123-4, 126, 128, 130, 132, 134, 137-40, 142-5, 150-1, 179, 

188,208-9 
United Nations Conference on Trade and Development (UNCTAD), 

133 
United Nations Educational, Scientific and Cultural Organisation 

(UNESCO), 209, 21 1 
United Nations Fund for Drag Abuse Control (UNFDAC), 209, 21 1 
United Nations Monitoring, Verificationa nd Inspection Committee 



(UNMOVIC), 9-10 



(UNSC) 



United States of America (USA), 52, 61, 124, 131, 182, 185, 

198-9, 226-7 
Uruguay Round, 132, 192 
Wheeler, Harvey, 23 1 

WorldBank, 133, 193 

World Health Organisation (WHO), 209, 212 

Zia - Ul-Haq, 125 

Zone of Peace, Freedom and Neutrality (ZOPFAN), 51-2, 1 10, 170 






Encyclopedia INDICES 61 



Meiji Restoration, 1 82 

Middle East, 9, 11, 24, 67, 126, 142, 211, 215 

Muslim Ummah, 11, 14, 22 

Non-Aligned Movement (NAM), 9, 22, 31, 38-42, 48-9, 53, 57-8, 

87-8, 99, 101-2, 127, 129 
New Economic Policy (NEP), 77 

New International Economic Order (NIEO), 50, 57, 89, 98, 201 
New Investment Fund (NIF), 75 
Newly Industrialised Countries (NICs), 73, 85, 183 
Nixon, Richard, 228 
Nyerere, Julius, 87, 148 
Organisation for Economic Cooperation and Development (OECD), 

87 
Organisation of Islamic Conference (OIC), 9, 1 1, 23-5, 53, 99 
Orientalism, 223-4 

Palestinian Liberation Organisation (PLO), 24, 47, 126 
Palme, Olof, 106 

Promotion of Investment Act (PIA), 75 
Reagan, Ronald, 111, 233 
Rousseau, J. J., 179 
Russian Revolution, 179 
Said, Edward, W., 223 
Santayana, George, 195 
Sartre, Jean Paul, 221-2 
Sept. 11,33,36-7 
Sihanouk, Nordom, 47, 128 
South-South Commission, 45, 57, 87, 89-91, 93, 105, 133, 148, 

186 
Soviet Union, 124, 131, 148, 186 

SWAPO, 128 

Terrorism, 10, 32, 36, 38, 143 

Third World, 139, 148, 170, 200, 204, 221-3, 226, 228 








60 Encyclopedia INDICES 




Gandhi, Mahatma, 178 



(GATT) 



General System of Trade Preferences (GSTP), 102, 183 

Globalisation, 38 

Globalism, 175 

Gross Domestic Product (GDP), 39, 73 

Gross National Product (GNP), 70, 191 

Goebbles, 53 

Gorbachev, Michail, 111,182 

Great Depression, 195-7 

Group of Seven (G7), 81, 85, 119, 185, 192, 200-1 

Group of Fifteen (G 1 5), 8 1 

Group of Seventy Seven (G77), 57, 88, 101-3, 105 

Hitler, Adolf, 196 

Holocaust, 10, 32 

Hudson, H.V., 195-7,204 

Human Rights, 35, 44-5 

International Agency for Atomic Energy (lAAE), 9-10 

Investment Environment, 16, 61-2, 69 

International Conference on Drug Abuse and Illicit Trafficking 

(ICDAIT), 55, 112, 119. 133-4, 148, 207 
Internationa] Labour Organisation (ELO), 212 
International Monetary Fund (IMF), 133 
Iraq-Iran War, 23-4, 41-2, 48, 82, 124 
Islamic Summit, 22 

Langkawi Declaration on the Environment, 164, 172 
League of Nations, 137 
Lincoln, Abraham, 233 
Lyall, Sir Alfred, 224 

Malaysian Industrial Development Authority (MED A), 67, 75 
Malthus,217 
Mandela, Nelson, 104 
Marx, Karl, 187 




Encyclopedia INDICES 59 





INDEX 

Africa Recovery Review Committee (ARRC), 133 

Al-Azhar University, 13 

American Investment Group (AIG), 72, 75, 77 

Antarctica, 25, 55, 130, 149 

Apartheid, 35,46, 55,58, 191 

Aron Raymond, 243 

Association of Southeast Asian Nations (ASEAN), 52, 64, 70, 72, 

100, 109-114, 128, 144, 170, 172, 177, 179, 184-6,211 
Asean- EC Cooperation, 167, 169, 173-4 
Asean Free Trade Area (AFTA), 1 67-8 

Asean Interparliamentary Organisation (AIPO), 109-10, 112-3, 
Association for State Trading Organisations (ASTRO), 102 
Axis of Evil, 38, 155 
Biko, Steve, 104 
Biodiversity, 161-2, 165-6 
Caracas Programme of Action, 103 
Central Intelligence Agency (CIA), 227 
Cold War, 32, 83, 155-8 

Commonwealth, 104, 115-6, 118, 164, 189, 191, 194 
Commonwealth Fund for Technical Cooperation (CFTC), 1 15 
Commonwealth Heads of Government Meeting (CHOGM), 118, 

164, 172 
Commonwealth Parliamentary Association (CPA), 115-9, 174 

Contradora Group, 54 
Cromer, Lord, 224, 225 

Deng, 182 

European Community (EC), 167-9, 182 

European Economic Community (EEC), 132, 201, 21 1 

Environmental Quality Act, 163 

Esquipulas Peace Agreement, 129 

Forbes, Malcolm, 178 

Free Trade Zone (FTZ), 77 




Vol. X 
CONTEMPORARY ISSUES 






Encyclopedia INDICES 55 



Part -2 




REGIONAL COOPERATION and THE DIGITAL 
ECONOMY 



Asean Free Trade Area (Asean), 17, 34-5, 55-6, 159 
Asean Industrial Cooperation Scheme (AICS), 56 
Asean Investment Area (AIA), 56 
Asean Regional Forum, 158 

Asia-Pacific Economic Cooperation, 9, 119-24, 135, 158-9 
Association of Southeast Asian Nations (Asean), 9, 15, 17-8, 23-4, 

31-7, 55-60, 67-73, 77, 99, 107, 115, 123-4, 127, 131, 136, 

154, 175-181, 184, 191-2 
Cyberjaya, 43, 62, 80, 85-9, 98, 1 14, 1 17 
European Community, 1 35-6, 203 

Group of 7, 18,42, 147, 177 

Group of 15, 49-53, 96 

Information Age, 21, 23, 39-41, 53, 65-6, 70-1, 75-8, 81-3, 85-7, 

91-2, 96-8, 100-2, 107, 109, 114, 116, 125-6, 128, 131-3, 
134, 138-8, 141-2, 146, 164, 166 
International Advisory Panel (lAP), 19, 21, 41, 45, 61, 82, 133 

Multimedia Development Coiporation (MDC), 21, 62, 79, 83, 99, 

108, 115-7, 133-4, 138, 147, 166 
Multimedia Super Corridor (MSC), 10, 19-22, 24, 39-48, 53, 61-3, 

65-6, 65-6. 78-83, 85, 87-9, 92-5, 97-105, 107-9, 113-7, 

125-34, 136-40, 165-7, 174 
North American Free Trade Agreement (NAFTA), 135-6, 194, 200 
Putrajaya, 43-4, 46, 62, 64, 79-80, 89, 98, 103, 114, 127, 129, 

132, 136, 147, 165-6 
Vision 2020, 13, 40, 62-3, 85, 104-7, 126, 130-2, 136, 186, 205 
World Trade Organisation (WTO), 52, 58, 146, 172 






54 Encyclopedia INDICES 



Pasicif Economic Cooperation Council (PECC), 39-40, 44, 46 

Pacific Era, 33, 36 

Pax Pacifica, 3 1 

Socialism, 3 

Somalia, 2 

Southeast Asia, 4 

South Korea, 25 

UN, 1, 2 

UN Charter, 1 

UNCTAD, 41 

Uruguay Round, 46 

USA, 7-8, 18, 33 

USSR, 17 

Vision 2020, 47 

World Economic Forum, 12 

World War, 1-3, 9, 14, 18,23 







Encyclopedia INDICES 53 




Part -1 



REGIONAL DEVELOPMENT and THE PACIFIC 
COMMUNITY 



Afghanistan, 2 

AFTA, 45, 47 

APEC, 29, 43 

Asean, 8-10, 26, 29-30, 55 

Asia Pacific Round Table, 40 

Asian Renaissance, 25, 30 

Asian Resurgence, 25 

Asian Values, 1 3 

Bosnia, 3 

Capitalism, 3 

Chechnya, 3 

Cold War, 1-3,9, 14, 18,23 

Communism, 3 

East Asia Economic Caucus (EAEC), 28, 34, 47, 52-3, 55 

East Asia Economic Group (EAEG), 28 

EEC, 1 7 

Europe - East Asia Summit, 12 

European Commission, 14 

European Union, 14, 19, 55 

GATT, 10, 45, 52 

Group of 15 (G15), 56, 59-60 

Huntington, Samuel P., 12 

IMF, 12 

Japan, 20, 25, 33, 36, 41 

Malaysia, 4, 7, 41, 48-51, 54, 57-9 

NAFTA, 12, 27, 34, 45, 55 

NICs, 18, 21 
North-South Relations, 1 5 

OECD, 41 








Vol. IX 






Encyclopedia INDICES 49 



Asian Renaissance, 81, 129, 136-7, 148, 173, 178, 180 
Bosnia - Herzegovina, 21, 67, 1 1 1-2, 183-4, 204, 206-7 
Capitalism, 10-2, 41, 44-5, 48-9, 51, 54, 87, 93, 165, 167 
Communism, 18, 41, 43-4, 48, 51, 165, 167, 193 
Corruption, 35, 40, 51, 142, 194 
Cronyism, 35 

Democracy, 10, 17, 32, 39, 51, 63, 71, 95, 98-9, 105-6, 131-2, 

141, 143, 171, 178-80, 185-6, 193-7, 199, 204-5 
Liberal Democracy, 9, 12, 15, 18, 31, 41, 43-4, 49-50, 87-8, 
195 

General Agreement on Tariffs and Trade, 115-6, 168 

Group of 7, 113-4, 117 

Huntington, Samuel P., 49, 145 

International Development Assistance, 115 

International Monetary Fund (IMF), 13, 34, 36-37, 97, 1 14 

Krugman, Paul, 77, 132 

Look East Policy, 84 

Non-Governmental Organisations, 103, 106, 203-4, 206 

North American Free Trade Agreement (NAFTA), 61, 84, 198 

Socialism, 18, 41, 43-4, 48, 51, 101, 165-7, 193 

United nations, 9, 11, 17-9, 32, 51, 68-9, 81, 111, 114, 119-20, 

181-4, 186-7, 189, 197-9, 202-3, 206-7 

United Nations Charter, 1 1 1, 183, 202-3 

United Nations Conference on Trade and Development (UNCTAD), 

187 
World Trade Organisation (WTO), 88, 114-7, 153, 167-8, 198-200 

World War I, 26, 55 

World War II, 14, 26, 55, 66, 68, 83, 87, 105, 121, 123, 131, 147, 

176, 186, 201-2 








Vol. VIII 

POLITICS, DEMOCRACY and THE 
NEW ASIA 





46 Encyclopedia INDICES 



NATO, 28 

Nazism, 74 

New Economic Policy (NEP), 48-9 

New World Order, 60 

NGOs, 23, 25-6, 63 

Orwell , George, 1 1 

Pacific War, 2 

PLO, 70 

Purchasing Power Parity (PPP), 3 

Security Council, 60, 63-5, 73 

South Asia Regional Cooperation (SARC), 43 

UNCED, 74 

U.N.O., 8, 22-3, 27-8, 59-61, 67, 70, 73 

UNPROFOR, 63, 70 

USA, 7-9, 14, 17, 33-5, 39-41, 51, 62, 71 

Vision 2020, 17, 49 

Western Values, 15 

World Bank, 3 

World Trade Organisation (WTO), 9, 11 

World War II, 22, 37, 73 

Yellow Peril, 2 







Encyclopedia INDICES 45 



Part -2 



DEMOCRACY, HUMAN RIGHTS, EAC and ASIAN 
VALUES 




APEC, 9 

ASEAN, 8, 44, 47-8, 52, 56 

Asian Values, 13-4, 16,20 

Aznavour, 44 

Bosnia -Herzegovina, 27, 59-65, 68-70 

Churchil, Winston, 23 

Cold War, 13, 24, 37, 43, 67-70, 74 

Communism, 4, 14 

Democracy, 4-7, 16-8, 25, 31-2, 50-1, 54-5, 68-70, 74 

EAEC, 35-7 

European Commission, 40, 42, 44 

European Community, 40, 42 

European Union, 9, 40, 42-3 

Evil Empire, 67-8 

GATT, 56 

Ghali, Boutros B., 63 

Hitchcock, David, 14-5 

Human Rights, 8, 17, 22-3, 25, 27-9, 74 

Huntington, Samuel P., 20 

Hussein Saddam, 25 

IMF, 40 

Iran-Iraq War, 68 

Jackson Michael, 72 

Koresh David, 7 

McLuhan, Marshall, 41 

Melosevic, Slobodan, 59-60 

Mozart, 44 

NAFTA, 9, 36 

National Development Policy (NOP), 49 






44 Encyclopedia INDICES 



Malaysian Industry - Government Group for High Technology 

(MIGHT), 31-2 

Malaysian Institute of Micro-Electronics Systems (MIMOS), 12 
Malaysian Technology Development Corporation (MTDC), 27 

Maxstar, 12-3 

Measat System, 1 1 

Micro Satellite Programme, 1 1 

NAFTA, 6 

National Council for Scientific Research and Development (NCSR), 

32, 63 
NGOs, 26-7 

Nissho Iwai Corporation, 9 
Plaza Accord, 4 

Research and Development (R & D), 20, 27-9, 44, 52-3, 67-9, 72 

Small and Medium Industries (SMIs), 19 

Smart Partnership, 1, 5, 7 

Southeast Asia, 2, 35-6 

Tanga Nasional Berhad (TNB), 15-7 

Technology Action Plan, 26 

UNESCO, 67 

Vision 2020, 26 




Encyclopedia INDICES 43 




Part -1 



SCIENCE, TECHNOLOGY and CREATIVITY 



America, 2, 4, 6, 64 

APEC, 6 

Asean, 10, 34, 41-5 

Asia, 5, 6 

China, 5, 55 

Cold War, 6 

Commonwealth Consultative Group on Technology Management 

(CCGTM), 32-3 
CPSP, 31, 33 
Darwin, Charles, 39 
EAEC,6 
Europe, 6 

German Malaysian Institute (GMI), 21-3 

Germany, 21 

Globalisation, 30-1 

Independent Power Plants (IPP), 15-7 

Indian Space and Research Organisation (ISRO), 12 

Industrial Master Plan, 26 

Industrialists Steering Group (ISG), 30 

Intensification in Priority Areas (IRPA), 25 

Islamic Foundation for Science, Technology and Development 

(EFSTAD), 37-9 
Islamic Summit, 40 
Japan, 2-5, 19 

Kawasaki Heavy Industries Ltd,, 9 
Korea, 5 

Less Developed Countries (LDCs), 70, 72 
Malaysia, 1-2, 4-5, 9, 11-3, 15-7, 23-30, 34, 46-8, 57, 72 
Malaysian Business Council (MBC), 31-2 






Vol. VII 

SCIENCE, TECHNOLOGY and 

HUMAN RIGHTS 







Encyclopedia INDICES 39 



World Bank, 22, 36, 41, 45, 51, 96, 120, 209-10, 213 
World Trade Organisation (WTO), 10, 22, 32, 136, 45, 77, 89, S 

94, 96-7, 104, 108-9, 115, 130, 135, 198, 208, 216, 225-6 
World War 1, 93 

World War II, 20, 140, 175, 210, 221 






38 Encyclopedia INDICES 



Gulf War, 87, 172 

Human Rights, 74, 77, 88-9, 154, 171-2, 192, 197-8, 226 

Industrial Revolution, 25, 53-4, 61 

Information Age, 19, 25-7, 151, 153, 199 

Information and Communications Technology, 78 

International Labour Organisation (DLO), 94, 214 

International Monetary Fund (IMF), 9, 15, 22, 36, 41, 45, 51, 77, 

89-90, 96, 106, 108, 115-7, 120-2, 143-4, 146, 152. 160, 

165, 193, 201, 209-10 
Islam and Globalisation, 19, 27, 53-4, 60 
League of Nations, 213 

Long-Term Capital Management (LTCM), 16, 25, 118, 145, 162, 

165 
Mandela, Nelson, 31, 36, 170 
Marx, Karl, 195 
Merrill, Lynch, 33-4, 48 
Nationalism, 140 

New World Order, 41, 87-9, 91, 96-7, 203 
Non-Aligned Movement, (NAM), 169-70, 176-7, 215 
North Atlantic Treaty Organisation (NATO), 2 1 
Plaza Accord, 2 1 4-5 
Rule of Law, 24, 67, 165, 171 

Smart Partnership, 73, 79, 137, 179-80, 189, 205-6, 216, 218 
Smith Adam, 44, 47 

Socialism, 66, 68, 100-1, 138-40, 152, 174, 179, 181-2, 186, 188 
South African Development Cooperation, 206 
South African International Dialogue, 182, 206 



(UNCTAD) 



97 
United Nations General Assembly, 175 
United Nations Security Council, 175 
United Nations, 42, 1 75-6 

States, 85, 88, 90, 93-5 






Encyclopedia INDICES 37 



Argentina, 15 

Asia-Pacific Economic Cooperation (APEC), 167-8 

Association of Southeast Asian Nations (Asean), 206, 208, 216 

Bosnia-Herzegovina, 154, 213, 229 

Bretton Woods, 117, 159, 197 

Burundi, 87-8 

CAP Gemini Ernst & Young, 33-4, 48 

Capital Controls , 9 , 1 1 5 , 1 63 

Capitalism, 9, 32, 36, 63, 72, 92, 95, 100-1, 103, 123, 138, 152, 

173, 181-2, 186, 195-6, 198, 202 
Carter, Jimmy, 197 
China, 29, 34-35, 48. 94, 109 
Clinton Bill, 90 

Cold War, 21, 103, 152, 155, 172, 203, 225, 231 
Colonialism, 51, 169, 176-7 
Commonwealth Partnership for Technology Management (CPTM), 

79 
Communism, 21, 66, 68, 100-1, 138-40, 152, 155, 174, 179, 

181-2, 186, 188 
Corporate Debt Restructuring Committee (CDRC), 121 
Corruption, 84, 106-7, 130, 192, 199, 202, 209 
Cronyism, 22, 74, 84, 106-7, 143, 150, 199 
Democracy, 50, 63, 67-8, 70, 72, 74, 88-9, 122, 167, 170, 174-5, 

183, 197, 210-5, 223 
Deng Xiao Ping. 29-30, 33, 38 

Deregulation, 66, 69, 125, 130-1, 133, 186, 199-200, 203 
E-Commerce, 137, 148 

European Economic Community (EEC), 21, 214 
European Union (EU), 21, 207, 214 
Foreign Direct Investment (FDI), 75, 85, 102, 1 19 
General Agreement on Trade and Tariffs (GATT), 22, 103-4, 198, 





Vol. VI 

GLOBALISATION and THE NEW 

REALITIES 






Razali Ismail, Tan Sri, 45 

South Korea, 21, 39, 41-3, 57-60, 115, 130. 132, 143-4 

United Nations (UN), 44-5 

United Nations General Assembly, 45 

United Nations Security Council, 44 

Vision 2020. 10, 78, 157-61, 164-5, 167, 170, 191, 195, 204-5 

World B ank, 5 1 , 143 

World Trade Organisation (WTO), 41, 43, 53, 83, 133, 172 






Encyclopedia INDICES 33 



Part -3 



MANAGING THE MALAYSIAN ECONOMY 





Asean Free Trade Area (AFT A), 193 

Asean Regional Forum (ARF), 45 

Asian Monetary Fund (AMF), 39 

Association of Southeast Asian Nations (Asean), 37, 39, 41-3, 45, 

59, 102, 127, 145, 157, 193, 207, 210 
Camedessus Michel, 19, 34-5, 50-1, 94-5 
Central Depository System (CDS), 210 
Central Limit Order Book (CLOB), 24, 30 
China, 21, 23-5, 37-41, 43-7, 154, 193-4, 
Consumer Price Index (CPI), 213-4, 217 
East Asia Economic Caucus (EAEC), 41-3, 45 
Foreign Direct Investment (FDI), 75, 135, 151, 172 
Globalisation, 40, 90, 100-1, 109-10, 133, 162, 210 
International Monetary Fund (IMF), 19-20, 26-8, 31, 34, 39, 41-2, 

50-1, 55, 57, 63-5, 72-3, 79, 82-3, 85-6, 91, 94-5, 112, 116, 

132, 138, 140, 143 
Japan, 12, 18, 21-3, 25, 39, 41-3, 57-9, 98, 101-3, 119, 131, 

135-6, 143-5, 151, 154, 190-1 
Krugman, Paul, 96 
Kuala Lumpur Options and Financial Futures Exchange (KLOFFE), 

210 
Kuala-Lumpur Stock Exchange (KLSE), 24, 30, 32, 52, 85-6, 

210-1 
Long-Term Capital Management (LTCM), 19, 26, 36, 64, 71, 73-4 
Multimedia Super Corridor (MSC), 165, 175, 191-2 
National Economic Recovery Plan (NERP), 17, 22 
New Economic Policy (NEP), 49, 81, 153, 199-201 
Ogura, Kazuo, 42 
Organisation for Economic Cooperation and Development (OECD), 

58 





32 Encyclopedia INDICES 



Plaza Accord of 1985,31 

Risk-Weighted Capital Ratio (RWCR), 10, 25 

Singapore Stock Exchange, 39 

Small and Medium Industries (SMIs), 51 

Soros, George, 55 

Statutory Reserves Ratio (SRR), 24, 50 

Vision 2020, 57, 59 

World Trade Organisation (WTO), 10 






Encyclopedia INDICES 31 




Part -2 



THE MALAYSIAN CURRENCY CRISIS 
(How and Why It Happened) 




Bank for International Settlements, 10 

Bank Negara Malaysia, 9, 18, 23, 27, 31-2, 37, 51 

Base Lending Rate, 50 

Camedessus, Michel, 21 

Capital Controls, 53, 55 

Central Depository (pte) Ltd, 40 

Central Depository System, 39-41, 45 

Central Limit Order Book (CLOB), 39-41, 45, 47 

Corporate Debt Restructuring Committee, 51-2 

Currency Crisis, 16, 25, 57 

Danamodal (Bank-Refinancing Company), 51-2 

Economic Planning Unit, 27 

Foreign Direct Investments (FDIs), 14-5, 44, 46-7, 57 

Gross Domestic Product (GDP), 10, 19, 24, 46, 53 

Gross National Product (GNP), 10 

Group of Seven, 31-2 

International Financial Institutions, 36 

International Monetary Fund (IMF), 15, 19-21, 23-6, 32-4, 36, 

55-6 
Kuala Lumpur Stock Exchange (KLSE), 21, 39-40, 44-7, 50, 53 
Loan Complaints and Monitoring Unit (LCMU), 51 
Long Term Capital Management Fund (LTCM Fund), 34, 56 

Maastricht Treaty, 32 

National Development Policy (NDP), 13 

National Economic Action Council (NEAC), 21, 27, 36, 49, 51-2 

National Economic Recovery Plan (NERP), 21 

National Operations Council (NOC), 20 

New Economic Policy (NEP), 13, 20 

Non-Performing Loans (NPLs), 10, 49, 52 




30 Encyclopedia INDICES 



Perak Progressive Party, 4 

Sabah, 304 

Sarawak, 3-4 

Singapore, 3-4 

Socialism, 13, 15, 21 

Tunko Abdul Rahman, 2, 7 

Tun Razak, 7, 32 

Twist, Oliver, 56 

United Malays National Organisation (UMNO), 1-4, 7, 13, 16, 

28-34 
Weimer Republic, 101 






Encyclopedia INDICES 29 




Part -1 



THE MALAYSIAN SYSTEM OF GOVERNMENT 




Alliance Party, 2-3, 12-3, 16, 30, 34-6 

Amnesty International, 57 

Barisan Nasionale (National Front), 7, 12 

British Military Administration, 104-5 

British North Borneo, 3 

Capitalism, 13, 18-9 

Communism, 13, 15-6, 18, 21 

Datu Onn Jaafar, 2-3, 32 

Democracy, 1, 10, 24-5, 51, 77, 89, 99 

Democratic Action Party (DAP), 34 

Dickens, 56 

Federation of Malaya, 2 

French Revolution, 98 

Gerakan Party, 6-7 

Grand Alliance, 4 

Independence of Malaya Party (IMP), 2-3 

International Labour Organisation (ILO), 57 

Internal Security Act (ISA), 49-51 

Japanese Occupation, 1 14-5 

Magna Kart, 98 

Malayan Chinese Association (MCA), 2-3, 6, 28, 31-2 

Malayan Indian Congress (MIC), 2-3, 28-30, 34 

Malayan Union, 2 

Malaysia, 3-4, 12-3, 37, 43, 45-6, 48, 58-9, 65, 67-8, 74, 76-8, 

90-3, 101, 109-12, 114-5 
National Front, 12-3, 28-30, 34-6 
National Operations Council, 6 
Non-Governmental Organisations (NGOs), 93 
Pan Malayan Islamic Party (PMIP), 3-5, 7-8 
People's Action Party, 4, 7 




Vol. V 
MALAYSIA 






26 Encyclopedia INDICES 




South-South Cooperation, 66, 113-11 A 
Technical Support Facility (TSF), 177 
United Nations (UN), 65, 124, 168 

World War 1, 95 

World War H, 23, 46, 65, 94-5, 111, 129, 165, 180, 195, 212 
World Trade Organisation (WTO), 15, 18, 81-2, 96, 124, 156, 164, 

170, 175, 183-4 






Encyclopedia INDICES 25 




Asia-Pacific Economic Cooperation (APEC), 42-3, 120, 124, 205 

Association of Southeast Asian Nations (Asean), 119, 123, 126, 

138, 162, 164, 170, 212 

Bosnia - Herzegovina, 33, 168, 186 

Capitalism, 22, 31, 46-8, 54, 64, 70-1. 74, 80, 82, 84-5. 88-90, 

106 

Crony - Capitalism, 54, 73, 84, 88, 106 
Cold War, 31, 34, 63, 85, 173, 183, 188, 206, 209 
Commonwealth, 18-9, 124-5, 135, 140, 145, 147, 150, 162, 177, 

195 

Communism, 22, 31, 34, 46, 64, 70-1, 74, 76, 89, 94, 118, 192, 

208 

East Asia Economic Caucus (EAEC), 132 

European Union (EU), 94-5, 145, 163, 168, 205, 209-10 

General Agreement on Tariffs and Trade (GATT), 81, 96, 183 

Generalised System of Preferences, 157 

Globalisation, 9-11, 13-8, 21, 23-5, 27-32, 35, 40, 42-3. 47. 61, 

64, 69, 74-6. 79, 83-5, 87, 90, 101, 123. 128. 145-6, 

149-50, 163-4. 169-71, 175-6. 179. 182-8 
Group of 15 (G15), 34. 66, 169, 173-4. 176-7 
International Labour Organisation (ILO), 168 
International Monetary Fund (IMF), 26-7, 32, 37, 40, 57, 78, 84. 

117, 141-2, 165 
Langkawi International Dialogue. 10, 120, 129, 149, 161-5 
Multimedia Super Corridor (MSC), 125, 132 
National Development Policy (NDP), 108 
New Economic Policy (NEP), 103-4, 108 
Non-Governmental Organisations, 52, 55-6, 58, 190 
Smart Partnership, 9-10, 69, 76, 97-8, 101, 103-9, 112. 119, 

120-5. 127. 129-32, 149, 151-2, 154, 156-9, 161-2. 169-71, 

20 1 , 204-6 
Socialism, 22-3, 31, 64, 70-1, 74, 76, 89, 94, 116, 118, 148. 192, 

208 






Vol. IV 

GLOBALISATION, SMART 
PARTNERSHIP and GOVERNMENT 






22 Encyclopedia INDICES 




Kedah Malay Youth Union, 18, 

Kissinger, Henry A., 104-5 

Liberalism, 9, 106, 130. 149 

Long-Term Capital Management, 103, 111-2 

Look East Policy, 83-7, 89-90 

Malayan Union, 17-8, 71 

Marshall Plan, 60, 101 

National Development Policy, 36 

National Operations Council, 34 

New Economic Policy, 34-6, 41 , 83 

New World Order, 98 

North American Free Trade Area, 26 

Opium War 1 842, 60 

Organisation for Economic Cooperation and Development, 1 16 

Siti Hasmah Mohd Ali, 1 9 

United Malays National Organisation (UMNO), 18, 21-2, 33 

United States, 27-9, 50, 53, 60, 72-4, 84, 94-5, 102, 108, 122, 137 

Vietnam War, 11,29 

Vision 2020, 8, 40-3, 1 14 

WorldBank, 31, 116 

World Century, 130, 132-4, 138-9, 150-1 

World Trade Organisation (WTO), 1 16 
World War H, 14, 29, 71, 81, 101, 145 






Encyclopedia INDICES 21 



Part -2 



A NEW DEAL FOR ASIA 




Abdul Rahman, Tunku, 22 

Asean, 43, 49 

Asian Century, 11, 127-9, 134, 149 

Bank Negara Malaysia, 110 
Berlin Wall, 25 

Bretton Woods regime, 101-2, 107 

Bush, George, 98 

China, 27, 29, 60, 72, 82-3, 87, 130, 136, 144-5, 148-9, 151 

Cold War, 1 45 

Communism, 11, 25, 102 

Crony Capitalism, 57-8 

Cronyism, 10, 47, 57, 59, 77, 111, 113, 147-8 

Currency Crisis, 8, 12, 48, 50, 53, 59, 104-6, 110, 149 

Deregulation, 9, 106, 149 

Devaluation, 8, 48-9, 51, 61, 100, 103, 105 

EU (European Union), 26 

Federal Reserve Board, 50, 112 

Gandhi, Mahatma, 70 

Globalisation, 9, 40, 64, 106, 131, 139, 149 

Group of Seven (G7), 93, 100 

Gulf War, 98 

Hitchcock, David, 74-5 

Hitler, Adolf, 69 

Huntington, Samuel P., 134 

Clash of Civilizations, 134, 137, 150 
Industrial Revolution, 26 
International Monetary Fund, 31, 50, 53-4, 58, 60, 63, 94, 100-2, 

104-5, 107, 109-10, 112, 116, 147 
Japanese Occupation, 15-6, 83 
Kedah Malay Union, 1 8 






20 Encyclopedia INDICES 



Tunku Abdul Rahman, 105 

UMNO, 75-6, 78. 84-5. 102, 123, 126-7, 129-30 

UNCTAD, 96-7, 100 

United Nations, 38, 70, 72, 100, 108 

US, 8, 11-2, 35, 38, 45, 53-8, 63, 66, 72, 88, 107-9, 134-6, 143 

Western media. International press. 21-2, 29, 81, 90, 98-9, 129 

World Bank, 7-8, 11, 100, 102, 133 

WTO, 54-5, 90, 97, 99, 108, 133, 140 

wwn, 1 0, 93 







Encyclopedia INDICES 19 



Imperialism, 101 

Independents / ce, 10-1, 14, 23-4, 26, 30-1, 38, 45, 62, 72, 83, 86, 

104-7, 139 
Inflation, 2, 47-8, 56, 1 14 
Islam, 16-7, 68-70. 73-4, 76-9, 126 
Japan, 11-2, 14, 19, 33-4, 36-8. 47, 56-7, 59, 65-6, 88, 91, 93, 

101, 103, 109, 112, 117, 122-3. 135, 146 
Japan Incorporated, 33-4, 136, 139-40 
KLSE / Stock market. 5, 11, 42-3, 45-7, 132 
Liberalism, 76, 96, 119.140 
Look East Policy. 36-7. 88, 122 
Mahathir, 8, 36, 49 
Multimedia Super Corridor, 119 
Muslims, 15-6, 18. 61, 64. 68-74, 79, 81, 85, 92-3 

NAFTA. 39, 58, 66, 100-1, 133 

National Front / Barisan Nasional, 2-4, 75, 78-9, 84, 127 

NATO, 26-9, 53 
Nazi, 38. 65. 101 
NEAC. 43-4, 1 14 
NEP, 36-7, 78. 84-5 
Nepotism. 76, 139 
Nuclear Weapons, 39, 72-3 

OIC, 74 

Oligopoly, 99-100 

OPEC, 99 

Pacific War, 33, 65, 101, 135-6 

PAS, 75-7, 79-80, 85, 126 

Prophet Muhammad. 1 6, 74 

Race Riots. 28-9. 36, 64, 77, 126 

Recession, 35, 47-9, 86-7, 97, 102 

Revaluation, 102 

Short Term Capital, 6, 9, 32, 49 

Terrorism. 71-2 





18 Encyclopedia INDICES 





D-8, 74 

DAP, 77, 79 

Davos, 7-8 

Democracy, 19, 22, 24-5, 58-9, 61, 63-5, 81-2, 89-90, 94, 100, 

110, 136, 142 
Deng Xiao Ping, 57 

Devaluation, 32, 35, 44, 46, 48, 75, 87, 97-8, 114, 118 
Developed Nations, 6, 17, 96-8, 137 
Developing Nations, 6-7, 11, 96-8, 1 17, 133, 143 

EAEC/G, 39, 58-9, 63, 66-7, 101, 133 

East Asia, 1, 4, 35, 39, 46, 48, 55-6, 58-9, 65-6, 97-100, 142 

East Timor / Timor-Timur, 60-4, 67, 95 

Economic Turmoil, 9, 22, 43-4, 49-50, 61, 64, 75, 83 

Ethnic Cleansing, 26-9 

EU, 12, 31, 39, 58, 66, 100-1 

Europe, 10, 26, 36, 39, 58, 92, 100-1 

Extremism, 24, 73 

Financial architecture, 7, 1 1 

Financial Crisis, 86, 97 

Financial System, 6-7 

Financial Turmoil, 41, 44, 64, 83, 86 

Francis Fukuyama, 3 1 

Free-market / trade, 31, 96-7, 107 

GDP, 47, 56, 84, 109 

Globalisation, 6, 10, 31, 66, 87, 89, 96-7, 99, 119, 140 

Gulf War, 30 

G-7, 6, 7, 11,30,50, 101 

G-8, 102, 112, 136 

G-15, 6-7, 10-1 

G-77, 112, 117 

Hedge Fund, 46, 87, 139-40 

Human Rights, 26-7, 30-1, 54-5, 59 

IMF, 7-9, 11, 44, 46, 50, 61, 86-7, 90-1, 94, 96, 98, 100, 102, 

118,128,133,136 





Encyclopedia I^fDICES 17 



Part -1 



REFLECTIONS ON ASIA 



Abdullah (Ahmad Badawi) - Deputy Prime Minister, 127-8, 130 

AFTA, 86 

Alliance, 77-8, 105 

Anwar Ibrahim (ex- Deputy Prime Minister), 8-9, 15, 20-3, 44, 

49-50,76-7,85,114,127-8 
APEC, 58-9, 63, 86 

ASEAN, 31, 63, 69, 86, 95, 100, 102, 108, 112, 117, 133 
Asia, 1,4,38,40,63-4, 101, 108 
Asian Development Bank, 102 
Asian Regional Fund, 39, 58, 134 
Asset Management Company, 43 
Australia, 5 8 , 60- 1 , 63 
Baader-Meinhof, 70 

BIS (Bank of International Settlement), 7,11 
Bretton Woods, 7, 88 

Capitalism, 89-90 
Capital Controls, 44, 51 

Central Bank, 44-5, 47, 88 

China, 52-9, 87, 101, 104, 109, 115 

Chinese, 28, 37, 53, 58, 74-5, 77-9, 84, 86, 92-3, 95, 105-6, 124 

CIS , 95 
CLOB ,42-3 
Commonwealth, 8 1 
Communism, 89-90 
Corruption, 76-7, 98, 120-1, 125 
Currency Crisis, 99, 11 4 



44 



64 



83, 



87-8, 97-8, 103, 115, 140 
Cronyism, 76, 85, 98, 139 







Vol. Ill 
ASIA 




B 




14 Encyclopedia INDICES 




Melaka, Malacca, 3, 46, 130-1 

Muhammad Ibn Musa al Khwarizmi, 24 

Muhammad Ibn Rushd, 24 

Muslims, 4, 5. 14, 20-43, 54, 62, 65-7, 69-72, 74-6, 78-82, 84-8, 

94, 95, 105, 107, 109-12, 114-6, 136 
Muzaffar Shah, 77 
Nixon, President, 152 
North Africa, 21, 24 
North America, 1 30 
Pakistan, 51 
Paris, 67 

Parti Islam (PAS), 154, 157, 158 
Perak Malay League, 156 
Persia / Persians, 3 

Prophet Muhammad, 14, 18, 19, 29, 33, 77, 107 
Razak, Tun, 158 
Saidina Hamzah, 136 
Saidina Usman, 107 
Siti Khadijah, 107 

State Economic Development Corporations, 126 
Sukarno, 117, 118 
Sultan Sulaiman Club, 1 54, 1 56 
UhudWar, 136 
UMNO Youth, 1 59, 1 6 1 

United Malays National Organisation, 133, 154-9 
United States of America / Americans, 79, 84, 102, 114, 118, 137, 

152 
Vasco da Gama, 130 
Vietnam,47,51, 84, 118 
West Asia, 21, 24, 36, 49, 79, 1 14-5 
Whitehall , London, 1 60- 1 
Yom Kipur War, 49 
Yugoslavia, 138 






Encyclopedia INDICES 13 



Indian Muslims, 19 

Indians / India, 24, 77, 133, 155, 160 

Indonesia, 118 

Industrial Revolution, 57, 58 

Islam, 5, 13, 14, 18-43, 54, 62-3, 65, 67, 71-2, 74-7, 80-2, 84-8, 

94, 105, 107-12, 114-6, 120, 136 
Iskandar Shah (Alexander the Great), 54 
Israel, 49, 105 
ITM, 119 

Japan / Japanese, 55, 130, 133-4, 160 
Johore, 155 

Kampung Bahru, 154 
Kedah, 34, 119, 155 

Kesatuan Melayu Kedah, 156 

Kestatuan Melayu Singapura, 156 

King Louis XIV, 67 

Kitab Al-Manazir, 24 

Kitab Al-Mansuri, 24 

Kropotkin, 137 

Kuala Lumpur, 119 

KubangPasu, 155 

Labour Party / Government, British, 59, 60, 62, 121, 123 

Lancashire, 50 

Maktab Mahmood (Aldor Setar), 26 

Malay Language / Bahasa Malaysia, 41-2 

Malay Nationalist Party, 84, 88 

Malayan Union, 133, 136, 160 

Malays, 1-3, 18-22, 25-7, 37-9, 41-5, 77, 83-103, 132-4, 147-8, 

1 54-60 
Malaysia, 4, 8, 9, 33, 39, 44, 51, 55, 63-4, 72, 84-5, 89, 94, 97, 

98, 105, 119-21, 126, 128, 159-65 
Marie Antoinette, 67 
Mecca, 114, 136 






12 Encyclopedia INDICES 

Communist / Communism, 4, 5, 10, 12-3, 58, 68, 69, 79, 83-90, 

113-4, 120, 122, 125, 164 
Congress of Malay Organisations (1946), 157 
Cordova, 23 

Dewan Bahasa dan Pustaka, 41 
Dutch, 131, 155 

East Asia, 78 

East Europe, 21 

Egyptians / Egypt, 105 

Emergency (1948-1960), 84 

European Economic Community (ECC), 48-9 

Europeans / Europe, 20, 22-5, 54, 101, 118, 130, 154, 163 

Federal Reserve Unit (FRU), 1 19 

Federation of Malaya, 159, 161-2 

France, 87, 118 

French Revolution, 67, 69 

Gandhi, 133 

Genghiz Khan, 54 

Germany, Germans, 134, 135, 154 

Greece, 3, 22 

Hang Tuah, 3 

Hinduism, 9 

Hitler, 134, 135 

Hong Kong, 50 

Hunayan, bin Ishak al-Ibadi, 24 

Huneyn War, 136 

Ibn-al Haytham, 24 

IbnBatuta, 24 

Ibn Khaldun, 24 

Ibn Rushd, 25, 30 

Ibn Sina, 24-5, 28 

Imam Ghazali, 28 

Independence of Malay Party (IMP), 157 










Encyclopedia INDICES 11 




Abdullah Ibn Sina, 24 

Abdul Rahman Putra, Tunku, 1 59 

Abdul Rahman the Third, 23 

Abu Bakar Muhammad bin Zakaria ar-Razi, 24 

Abu Musa, Jabir, 24 
Achen, 154 

Africa, 1 30 

Albania, 84, 90 

Al Biruni, 24 

Al Maamoun, 23 

Al Masail fi Al Tibb, 24 

Al Qanun, 24 

Amnesty International, 53 

Arab, 19, 36, 49, 77, 90, 99, 113-5 

Baghdad, 23 

Bakunin, 173 

Bali, 131 

Bangi, 119 

Berbers, the, 20 

Bert Lance, 152 

Britain / British / United Kingdom, 3, 9, 1 1, 21-2, 36, 41-4, 50, 54, 

59, 60, 62, 68, 84, 102, 121-4, 132-3, 135, 138, 147-8, 

154-6, 159-62 
British Government, 50 
British Trade Union Congress, 59 

Buddhists, 87-9 

Caesar, Julius, 54 

Caliph Harun al-Rashid, 23 

Canon of Medicine, The, 24 

Carter, President, 1 52 

Central Asia, 21, 24, 78, 80, 115 

China, 29, 33, 130, 141, 146. 154. 160 

Chinese, 160 

Christianity / Christian, 22-3, 26-7, 36, 82, 87, 109 






Vol. II 

THE CHALLENGE 






Encyclopedia INDICES 7 




Turkish Empire, 72, 77, 81, 90, 126, 130, 152, 198, 266 

Turkish Sultanate, 130, 217, 266 

United Nations (UN), 9-10, 68 

Vision 2020, 6 1 

World Bank, 19,51 

World Trade Organisation (WTO), 1 9, 54 

World War 1, 152 

World War II, 18, 84, 109, 152 

Yugoslavia (former), 10, 70, 77 







6 Encyclopedia INDICES 




Islamic Justice, 27-30, 111, 169, 174, 177, 179-80, 182, 184, 189 

247, 250-1, 253 
Kosovo, 67, 76, 84 

Kuala Lumpur Stock Exchange (KLSE), 58 
Long-Term Capital Management (LTCM), 22 
Look East Policy, 140 
Malaysia, 14-5, 21, 28-9, 38-9, 43, 51-61, 71, 80-2, 92-3, 97, 99, 

101-2, 114-5, 117, 121, 132, 137-8, 140, 159-60, 162-5, 

181, 184, 199-200, 209, 212, 237, 251-2, 269 
Marx, Karl, 82 
Mecca, 45, 48, 106, 133, 173, 182-3, 191, 217-8, 241. 251, 257, 

270-2 
Medina, 31, 45, 47, 94-5, 106-7, 133, 148-9, 182-3, 194, 204, 

27-8,241,251,271 
Muslim Direct Investments (MDIs), 13-4 
Materialism, 81, 102, 203-11 
National Economic Action Council (NEAC), 59-60 
North Atlantic Treaty Organisation (NATO), 18, 197 
New Economic Policy (NEP), 53, 55 
Non-Governmental Organisations (NGOs), 118, 165 
Non-Performing Loans, 59 

Organisation of Islamic Conference (OIC), 10, 12-4, 117, 143, 156 
Ottoman Empire, 1 37 
Pakistan, 99, 131 

Palestine, 21, 78-9, 84, 93, 117, 153, 211, 247 
Serbia, 68, 70 
South Korea, 012 
South-South Cooperation, 141 
Spanish Empire, 87 

Spanish Inquisition, 109-10, 119, 145, 196 

Terrorism, 65, 68, 78-9, 84-5, 93, 118, 154, 196-7, 231 

Thailand, 55-6, 67, 102 

Turkey, 90, 99, 126, 130-2, 137, 152, 172, 266 





Encyclopedia INDICES 5 





Abdul Rahman, Tunku, 1 14-5 

Arabian Peninsula, 47, 123, 152, 159, 173, 204, 219 

Atatiirk, Mustafa Kemal, 90, 152 

Bangladesh, 99 

Bilateral payment arrangements (BPAs), 54 

Bosnia - Herzegovina, 67, 70, 76, 80, 84, 97, 109, 114, 121, 131, 

164, 196-7, 212, 246, 266-7 
Chechnya, 10,67,70-1, 131 
Christianity, 32, 76-7, 79, 87, 90, 109-10, 196, 198, 227, 229, 

233, 247 
Cold War, 18,210 
Communism, 18,201 

Corporate Debt Restructuring Committee (CDRC), 59 
Crusades, 84, 195 
Democracy, 39, 103, 118-9, 138, 40, 200, 245-6, 

liberal democracy, 25 139 

East Timor, 7 1 

Foreign Direct Investments (FDIs), 13-4, 52, 58, 61 

Fundamentalism, 197, 200 

General Agreement on Tariffs and Trade (GATT), 1 9 

Globalisation, 8, 13, 17, 20-1, 23-4, 58, 100-2, 121-2 

Group of Eight Islamic Countries (D8), 99, 103, 137, 139, 142 

Group of Fifteen (015), 141 

Hitler, Adolf, 84, 109 

Human Rights, 10, 18, 21, 71, 245-6 

Indonesia, 71,99, 102, 163 

Industrial Revolution, 22, 122 

Information Age, 8, 14, 22-4, 38, 44, 122, 135 

Information Technology, 23-4, 73, 122, 128, 131, 245 

International Development Bank (IDB), 14 

International Monetary Fund (IMF), 19, 51, 55 

Irish Republican Army (IRA), 196 

Islamic Civilisation, 11, 62, 83, 86, 96-8, 143, 169, 213-4, 216-20, 

233, 238, 256, 261 






Vol. I 

ISLAM and THE MUSLIM UMMAH 







Encyclopedia 
INDICES 




240 Index 



Third World. 139, 148, 170, 200, 204, 221, 222, 223, 226, 228 
United Nations - UN, 9, 10, 22, 38, 39, 42, 47, 48, 53, 54, 118, 

119, 123, 124, 126, 128, 130, 132. 134, 137, 138, 139, 140, 
142, 143, 144, 145, 150. 151, 179, 188,208,209 
United Nations Conference on Trade and Development - 



UNCTAD 



Cultural Organisati 



UNESCO 



United Nations Fund for Drug Abuse Control - UNFDAC, 209, 

211 
United Nations Monitoring, Verification and Inspection Committee 

-UNMOVIC,9, 10 
United Nations Security Council - UNSC, 9, 10, 124, 125, 142, 147 
United States of America - US A, 52, 61, 124, 131, 182, 185, 198, 

199, 226, 227 
Uniguay Round, 132, 192 
Wheeler, Harvey, 23 1 
WorldBank, 133, 193 

World Health Organisation - WHO, 209, 212 
Zia-ul-Haq, 1 25 

Zone of Peace, Freedom and Neutrality - ZOPFAN, 51, 52, 110, 

170 







Index 239 




Malaysian Industrial Development Authority - MIDA, 67, 75 
Malthus, 217 

Mandela, Nelson, 1 04 

Marx, Karl, 1 87 

Meiji Restoration, 182 

Middle East, 9, 1 1, 24, 67, 126 142, 21 1, 215 

Muslim Ummah, 1 1, 14, 22 

Non - Aligned Movement - NAM, 9, 22, 31, 38, 39, 40, 41, 42, 48, 

49, 53, 57, 58, 87, 88, 99, 101, 102, 127, 129 
New Economic Policy - NEP, 77 

New International Economic Order - NIEO, 50, 57, 89, 98, 201 
New Investment Fund - NEF, 75 
Newly Industrialised Countries - NICs, 73, 85, 182 
Nixon, Richard, 228 
Nyerere, Julius, 87, 148 
Organisation for Economic Cooperation and Development - 

OECD, 87 
Organisation of Islamic Conference - QIC, 9, 11, 23, 24, 25, 53, 99 
Orientalism, 223, 224 

Palestinian Liberation Organisation - PLO, 24, 47, 126 
Palme Olof, 106 

Promotion of Investment Act - PIA, 75 
Reagan, Ronald, 111, 233 
Rousseau - J.J., 179 
Russian Revolution, 179 
Said, Edward, W., 223 
Santayana, George, 195 
Sartre, Jean Paul, 221, 222 
Sept. 11,33,36,37 
Sihanouk, Nordom, 47, 128 
South - South Commission, 45, 57, 87, 89, 90, 91, 93, 105, 133, 

148, 186 
SovietUnion, 124, 131,148, 186 

SWAPO, 128 

Terrorism, 10, 32, 36, 38, 143 







238 Index 



Europeanm Community - EC, 167, 168, 169, 182 
European Economic Community - EEC, 1 32, 20 1 , 2 1 1 
Environmental Quality Act, 1 63 
Esquipulas Peace Agreement, 129 
Forbes, Malcolm, 178 
Free Trade Zone - FTZ, 77 



Mahatma 




Tarrifs and 



GATT 



General System of Trade Preferences - GSTP, 102, 183 

Globalisation, 38 

Globalism, 175 

Gross Domestic Product - GDP, 39, 73 

Gross National Product - GNP, 70, 191 

Goebbles, 53 

Gorbachev, Michail, 1 1 1 , 1 82 

Great Depression, 195, 196, 197 

Group of Seven - G7, 81, 85, 1 19, 185, 192, 200, 201 

Group of Fifteen - Gl 5, 8 1 

Group of Seventy Seven - G77, 57, 88, 101, 102, 103. 105 

Hitler, Adolf, 196 

Holocaust, 10, 32 

Hudson, H.V., 195, 196, 197, 204 

Human Rights , 3 5 , 44, 45 

International Agency for Atomic Energy - lAAE, 9, 10 

Investment Environment, 16, 61, 62, 69 

International Conference on Drug Abuse and Illicit Trafficking 

ICDAIT, 55, 112, 119, 133, 134, 148,207 
International Labour Organisation - ILO, 212 
International Monetary Fund - IMF, 133 
Iraq-Iran War 23, 24, 41, 42, 48, 82, 124 
Islamic Summit, 22 

Langkawi Declaration on the Environment, 164, 172 
League of Nations, 137 
Lincoln - Abraham, 233 
Lyall, Sir Alfred, 224 






INDEX 





Africa Recovery Review Committee - ARRC 133 

Al Azhar University, 13 

American Investment Group - AIG, 72, 75, 77 

Antarctica, 25, 55, 130, 149 

Apartheid, 35, 46, 55, 58, 191 
Aron Raymond, 243 

Association of Southeast Asian Nations - ASEAN, 52, 64, 70, 72, 

100, 109-114, 128, 144, 170-172, 177, 179, 184-186,211 

Asean - EC Cooperation , 167, 169, 173-174 

Asean Free Trade Area - AFTA, 167, 168 

Asean - Interparliamentary Organisation - AIPO, 109, 110, 112, 

113 

Association for State Trading Organisations - ASTRO, 102 
AxisofEvil,38, 155 

Biko, Steve, 104 

Biodiversity, 161, 162, 165, 166 

Caracas Programme of Action, 103 

Central Intelligence Agency, CIA, 227 

Cold War, 32, 83, 155, 156, 167, 158 

Commonwealth, 104, 115, 116, 118, 164, 189, 191, 194 

Commonwealth Fund for Technical Cooperation - CFTC, 1 1 5 

Commonwealth Heads of Government Meeting - CHOGM, 118, 

164, 172 
Commonwealth Parliamentary Association — CPA, 115, 116, 117, 

118,119,174 
Contradora Croup, 54 
Cromer, Lord, 224, 225 
Deng, 182 




236 Trinity College Lecture 




becoming of the comfortable to afflict the afflicted, to scorn the 
efforts of many men in many lands who are trying their level best, 
in the best way that they know how, to pull their people up by their 

bootstraps. 

Ladies and gentlemen, you have listened patiently to this 
lengthy, unlucid, contradictory presentation of views. 

I am now ready for your cross-examination. 






Holier Than Thou — a Mild Critique 235 




The real challenge to all who believe in democracy is how to 
balance between the procedures of democracy and its content, 
between the differing competing wishes of the people, between 
what the people want and what needs to be done. The real challenge 
also lies in preventing the tyranny of the majority and the tyranny 
of minorities. How are political rights to be balanced against 
economic rights ? How are rights like personal freedom to be 
harmonised with such community rights as order and security ? The 
moral, just and effective way in which these challenges are to be 
met must vary according to the givens of the given systems. 

In this world of today there are ultra- stable societies, 
ultra-unstable societies, and those societies which have been 
stabilisied in various states of potential instability. On the criterion 
of task, there are also essentially three types of societies : 
maintenance-needy societies in which the main business lies in 
ensuring business as usual, reform-needy societies in which there is 
a need for reform over a broad front, and revolution-needy states 
where there is a need for system transformation of the most 
fundamental kind over the most comprehensive front. To insist that 
the requirements of leadership within ultra-stable and ultra-unstable 
states are the same must verge on insanity. To insist that leadership 
forms, style and content in revolution-needy and maintenance- 
needy states must be identical or even similar is ludicrous. 

There is no denying that there are evil men and evil forces in 
many countries today. But there are many more good men 
grappling with difficult problems in impossible situations. It is not 
becoming of the comfortable to afflict the afflicted, to scorn the 
efforts of many men in many lands who are trying their level best, 
in the best way that they know how, to pull their people up by their 
bootstraps. 

Ladies and gentlemen, you have listened patiently to this 
lengthy, unlucid, contradictory presentation of views. 

I am now ready for your cross-examination. 





234 Holier Than Thou — a Mild Critique 




conceive of a regime that is not oligarchic in the sense that 
decisions cannot be taken by all but by the few. What makes a 
democracy different from other systems of governance is that in a 
democracy the governing oligarchy regards those whom they 
govern as their sovereign. It is a singularly important difference. 

The type of democracy that is right for a particular country 
depends of course on the particular conditions that pertain. If in the 
United States the Republicans and the Democrats worked on the 
basis of strict party discipline as the parties of Britain do, 
government would only be able to function effectively if the man in 
the White House were to be of the same party as the one that has a 
majority in Congress. The American system only works, to the 
extent that it does, because the Republicans and the Democrats are 
not disciplined parties in the British sense. On the other hand, if a 
British Cabinet were to function in the context of undisciplined 
parties, as the American Executive does, you can imagine how 
much attention will be devoted to courting every Member of 
Parliament and how little attention will be given to the task of 
governing. There will be many more opportunities for ambitious 
men to apply for the job of Prime Minister, as governments come 
and go, although it would be somewhat naive to believe there 
would be a drop in the number of applicants. 

The much touted two-party system can only work if the 
adversaries are agreed on the basics and are not poles apart. 
Imagine the chaos that would result from the vacillation from a 
rampantly socialist party to a rampantly capitalist party and back 
again. Imagine the dislocations that would take place if every four 
or so years, a country would have to veer from being an absolute 
theocratic state to one utterly secular, I should also point out to you 
that democracy and authoritarianism may not only live in peaceful 
coexistence. In fact many authoritarian regimes have been the 
expression of the democratic will, freely exercised. Many 
authoritarian governments have been elected by the will of the 
people, who want strong, no-nonsense administration. 





Holier Than Thou — a Mild Critique 233 




To what extent can a government be said to be elected by the 
people when so few go to the polls ? And what do we find when we 
break down the ranks of the electors ? In the 1980 presidential 
election there was a 33 percent difference between the percentage 
of high school certificate holders and degree holders who voted. In 
all the Western democracies, the main abstainers are the working 
class, which is the way most Western commentators, with their love 
for participatory democracy, prefer it to be. 

To what extent can government be said to be of the people 
when the costs of running for office are so high, that it must be out 
of reach of the common man ? In 1968, it cost an estimated $100 
million to elect a President from beginning to end. Were Lincoln 
alive today, he would be in his log cabin tweedling his thumb. 

To what extent can government be said to be for the people 
when wealth and money are so important and when pressure 
groups, which generally cost so much money, play such an 
important part in the functioning of the modem western democratic 
political system ? A most major flaw in the pluralist democratic 
heaven of the West is that the heavenly chorus signs with a strong 
upper class accent. The pressure system is what determines most 
political outcomes and the vast majority of the people of the 
Western democracies do not have the money to get into the 
pressure system. The unorganised and the disorganised have a say 
once every four or five years, and as we have pointed out in many 
countries in the West, most choose not to have that say. For the 
most part, in these countries, the bargaining is between a presidium 
of elites. 

Please allow me to end by outlining to you one or two thoughts 
on good government, good leadership and good political systems. I 
do agree that the real virtue of democracy lies in the fact that 
despite its awesome imperfections it is generally better than other 
systems, whose imperfections are generally even more awesome, 
Raymond Aron is right when he says that it is impossible to 







232 Holier Than Thou — a Mild Critique 



primary 



prominent 



"Second, and more important is the fact that even though in one 
part of our minds we realise that our participational experiment has 
failed, and even though we sometimes ridicule it, nonetheless as a 
nation we still hold to it, myth though it is. 

"Participational democracy is the only really distinctive 
contribution America has made to politics and we seem fearful of 
admitting its failure. When we state the basis of our opposition to 
Communism, it is that Communism does not provide for 
democracy as we have understood it, and therefore is not a "true" 
democracy, 

"But the democracy we foist on others is one we ourselves no 
longer have. Despite our inner knowledge that our own 
participational forms no longer work, we continue to base our cold 
war on the claim that the non- Western World should adopt these 
forms forthwith, and when we look at the political systems of the 
newer democracies in the underdeveloped areas of the world, one 
of our chief criticisms is that they are not sufficiently 
participational as in our special Victorian sense." 

It may surprise you, but I do believe that Wheeler overstates. 
But let us look at voting in the US primaries, one of the few 
remnants of what he calls participational democracy. It is by no 
means unusual to find less that 20 percent of registered voters 
turning out to vote. Let us take the US Presidential elections : This 
time around, 89 million Americans out of a total voting population 
of 174 million went to the polls, i.e. around 51%, a drop from 
1980's 42 percent. Out of the 89 million, President Reagan won 
52.6 million votes. Since the population of the United States was 
235 million, this means that only 26 percent of the American 
people actually and actively chose Mr. Reagan. If these figures 
appear exceedingly low, it should be noted that voter turnouts for 
Congress are substantially lower, and turnouts for elections at the 
lower level are very much lower again. 




Holier Than Thou — a Mild Critique 23 1 



Opinion largely preformed by the media and the knowledge that the 
steps that were necessary would not be approved by their 
electorates. 

Let me now turn to the really big one : the constant criticism 
that the Third World does not practice democracy and the constant 
pressure for all of us to adopt the system of "participatory 
democracy". Let me state quite categorically that I am in favour of 
democracy, of government of the people, by the people, for the 
people. At the same time, I believe that in practice, each nation 
must seek its own path to democracy. Neither the British form of 
democracy nor the American form of democracy - two distinct and 
different forms of democracy - can be exported whole and 
installed, ready made, in a very large number of countries. What a 
hue and cry there would be in Britain were the Americans to force 
their particular brand down British throats. What a big shake-out 
and a big shoo-in at the top of the civil service every time a new 

President is elected ? Judges to be chosen by the people ? 

Non-members of the Commons to be chosen as Ministers of the 
Crown ? A clear division of powers between the Executive and the 
Legislature ? An end to party discipline ? Heavens ! 

Harvey Wheeler, in his book, The Rise and Fall of Liberal 
Democracy, published by the American Centre for the Study of 
Democratic Institutions, wrote : "During the nineteenth century, 
America made a great commitment to a special, and indeed 
historically unique, form of democracy. It backed its gamble with 
some of the most indigenous governmental and political institutions 
known to history. Today, these institutions of populism and 
progression have been all but dismantled. They appear 
embarrassingly Victorian in retrospect like those monuments of 
Victorian architecture we are now busily tearing down. 



and 



We still carry 



arrangements 



facilitate democratic participation are still with us, though often 







230 Holier Than Tliou — a Mild Critique 



not interested in the dull stoiy of how hundreds of defenceless old 
men, women and children were slaughtered in a village in 
Vietnam ? I shall not tell you about the objective views of the 
Western media on the Arabs since we all know that they consider 
them as a bunch of shiftless and untrustworthy malcontents. 

Having offended the Right, let me now turn to offending the 
Left and making some remarks about Freedom. Personal freedom is 
of course a value of all peoples. Brown, Black and Blue. As 
someone who struggled against the British, as someone who spent 
many years in the political wilderness, I need no lecture on 
freedom. Many colonial peoples need no lesson from our former 
oppressors. But it surely ought not to come as a surprise to you that 
there are hundreds of millions, indeed billions, who believe that an 
Economic Bill of Rights is even more important that a Political Bill 
of Rights. It ought not to come as a surprise to anyone that to those 
who hear the growls in their stomach and who feel insecure, 

prosperity, development and order come before being able to go to 

the polling booth every few years, writing letters to newspaper 
editors, raising voices in the air and assembling under the trees, 
newsworthy attractive though some of these things are. 

Let me also say that freedom from oppression is more than 
freedom from die tyranny of the government; it must also mean 
freedom from the tyranny of particular interest groups and 

movements, and sometimes the tyranny of the minority. 
Governments need to be checked and put in their place. Power 
cannot but have a cormpting tendency. But Governments cannot 
contribute when they are cowed and intimidated. In how many 
countries in the West are governments cowed by the power of the 
military-industrial complex, intimidated by the big money men, 
browbeaten by trade union leaders, harrassed and terrorised by the 

Press - so intimidated in fact that they are deflected from doing 
what is necessary and what is just. After 1933, the majority of the 
governments of Western Europe knew that war was on the horizon. 
Why did they not re-arm, thus possibly preventing a mad man from 
bringing untold misery to the world ? They were defeated by public 





Holier Than Thou — a Mild Critique 229 




Let me turn your mind to the bastion of the Freedom of the 
Press, the United States. I have read in a book published in 1977 
no doubt it is an exaggeration — that five New York banks own 
controlling shares in America's three national television and radio 
networks : NBC, CBS and ABC. I have also read — 



I have also read — and no doubt 
this too is an exaggeration — that the magnificent five are also 
powerful shareholders of the New York Times, Time, Columbia 
Pictures and Twentieth Century Fox, In 1972, only four percent of 
American cities had competing newspapers under separate 
ownership. The trend is ever downward. 

Another writer, this time- writing in 1983, argued that twenty 
American corporation control more than half the 61 million daily 
newspapers sold every day; twenty corporations control more than 
half the revenues of the country's 11,000 magazines; three 
corporations control most of the revenues and audience in 
television; ten corporations in radio; eleven corporations in all 
kinds of books; and four corporations in motion pictures. In this no 
doubt jaundiced view, fifty Americans control more than half the 
information and ideas that reach 220 million of their countrymen. It 



primary 



make 



One must of course never forget the thousands of 
professionals who actually do the editorial work. To forget and 
insult them is to risk the gravest consequences. They are the men 
who vet, headline and determine the slant. They can literally make 
or break people and organisations. Indeed whole Governments can 
be brought to their knees by the people who determine what and 
how events should be presented in the media. Incur their wrath and 
you will pay a very high price indeed. 

Why, one wonders, did it take a year and a half for the My 
Lai massacre story to see the light of day ? Could it have anything 
to do with the fact that two wire services, several American 
magazines and news weeklies, one TV network and several major 
newsnaners in Boston and New York turned down and simolv were 







228 Holier Than Thou — a Mild Critique 

your poor ? Why are you spending so much on prestigious projects 
and weapons ? 

Let me now turn to the hallowed ideal of equality under the 
law, and the rule of law, principles that rightly are hallowed and 
that are violated in many Third World countries. Let me ask of the 
First World, how often is crime defined, in a continuous fit of 
absent-mindedness, as something which the have-nots commit 
against the haves ? In how many countries is legal service 
something which best serves those who can best pay for it ? Who 
gave preventive detention to the Third World ? And how many of 
the civilised countries of the West would introduce it if the 
conditions demanded it ? Is there preventive detention in Northern 
Ireland ? And let us not forget that twice, in two World Wars, the 
British (in my view, justifiably) suspended general elections. 

What happened to Nixon and his band of merry men ? 
Resignation was enough punishment for the leader. Herbert 
Kalmbach, Jeb Magruder and John Dean were handed sentences of 
between four to six months. Richard ICleindienst, once Attorney 
General, the highest legal officer in the land, who was guilty of 
perjury before a Senate committee was given a thirty-day 
suspended sentence and a $100 fine. And a commendation for 
distinguished service from an American court. By and large the 
high and the mighty are spared. 

Having caused so much offense thus far, let me now tilt at the 
towering windmill of the Western media whose power over the 
minds of the entire world is so massive and so utterly pervasive. As 
a Third Worlder I ask : Why must this entire planet be seen from 
the Western, Orientalist perspective ? Why must the Third World 
be judged day in and day out only according to the self-righteous 
values of the West and its media ? Why must so much sheer 
arrogance and sheer ignorance wreak so much havoc on the Third 
World ? Is Freedom of the Press, a value which I have been taught 
to treasure, nothing more than the right of a few editors and a few 
owners to censor and to decide what we all should read, listen to 
and watch ? 







Holier Than Thou — a Mild Critique 227 




Rockefellers or their close associates have occupied the offices of 
the President, Vice-President, Secretaries of State, Commerce, 
Defence and many other cabinet posts, the Federal Reserve Board, 
the governorship of several states, key positions in the CIA, the 
U.S. Senate and the House of Representatives. 

I do not agree with the Marxists who believe that bourgeois 
democracies are merely systems in which parties and parliaments 



C£in 



can 



economic 



How about the poverty and the income gap that we hear so 
much about in the preachings of those who are holier than thou ? 
The University of California completed a study in 1975 which 
showed that one million American babies and young children were 
suffering from brain damage from malnutrition arising out of 
extreme poverty. Black Americans, who only form 13 percent of 
the US population make up some 40 percent of those below the 
officially designated poverty line. To quote Newsweek again, in 
1977 the richest 10 percent of American households received 26,1 
percent of total American income while the poorest 10 percent 
received only 1.7 percent. Lest the British say **we are different," 
let me just add that in the UK, the bottom 10 percent earn 2.1 
percent of total income, while the top 10 percent earn some 25 
percent of all income. In the United States, Blacks generally earned 
60 percent as much as Whites and nearly one out of very three 
Blacks, Puerto Ricans and Chicanes lives below the poverty line. 

To be sure, poverty and income gaps in most developing 
countries are generally a great sight worse, but the top ten percent 
of all US households received 15 times as much income as the 
bottom 10 percent. Lest other states in the First World look askance 
at the American situation, the ratio for Japan was 10, the ratio for 
West Germany 11. And the honour for the highest degree of 
inequality among the industrialised countries went to France. 

The question that I would like to ask is what are you doing for 






226 Holier Than Thou — a Mild Critique 




For example, the Third World is constantly being criticised 
for their systems of inequality, for their unfair distribution of 
wealth, for the non-egalitarian character of their states, I concede 
that many are guilty on all counts. But is the West quite as innocent 
of these charges as it makes out to be ? Let me take the example of 
the United States, a proud country which has many things to be 
proud of. 

In the United States, one estimate is that one fifth of one 
percent of the American population own almost 60 per cent of the 
wealth of America. The super-rich, less than two per cent, own 80 
per cent of all stock, 100 percent of all state and municipal bonds 
and 88 percent of corporate bonds. In the United States there are 
some sixty billionaires and more than 100,000 millionaires. Two 
hundred companies account for some 80 percent of all resources 
used in manufacturing. If you will allow me to quote Newsweek, 
not one of my favourite magazine, "the top 20 percent of 
Americans owns 80 percent of all that can be privately owned in 
the United States and the bottom 25 percent owns nothing (many of 
them, in fact, have debts that exceed their assets)." It is true that 
many Americans own shares. But the many own very few, and the 
very few own a great many. 

If there is constant talk that in Third World countries a few 
families comer massive wealth, and massive political power, 
something that is of course unjust, let us not forget that the DuPont 
family in America controls eight of the forty largest defence 
contracts and grossed over US$ 15 billion in defence contracts 
during the Vietnam War, The DuPonts are said to control ten 
billion-dollar corporations including General Motors, Coca Cola, 
Boeing and United Brands. Over a million Americans work for the 
DuPonts, who are said to be the biggest contributors to Republican 
presidential campaigns. 

Even more powerful than the DuPonts are the Rockefellers. 
They are said to control five of the twelve largest oil companies and 
four of the largest banks in the world. At one time or another the 





Holier Than Thou — a Mild Critique 225 



In Stark contrast, Lord Cromer says : "The European is a close 
reasoner; his statements of fact are devoid of any ambiguity; he is a 
natural logician, albeit he may not have studied logic; he is by 
nature sceptical and requires proof before he can accept the truth of 
any proposition; his trained intelligence works like a piece of 
mechanism". Admittedly this remarkable piece of wisdom is from 
the good old days and is fashionably discredited by the West now. 
But it still influences and afflicts the Western mind. 

Let me interject that we in the colonised world were indeed 
fortunate that not more Europeans studied logic. What would the 
world have been, had all Europeans gone to Oxford to study logic ! 
Let us savour more of the wisdom of Lord Cromer, of whom 
Balfour said : "Everything he has touched he has succeeded in". 
Cromer, who emerged as the paramount consul-general of the 
British Empire of his time, continues : "The mind of the Oriental, 
on the other hand, like his picturesque streets, is eminently wanting 
in symmetry. His reasoning is of the most slipshod description. 
Although the ancient Arabs acquired in a somewhat higher degree 
the science of dialectics, their descendents are singularly deficient 
in the logical faculty. They are often incapable of drawing the most 
obvious conclusions from any simple premises of which they may 
admit the truth. Endeavour to elicit a plain statement of facts from 
any ordinary Egyptian. His explanation will generally be lengthy, 
and wanting in lucidity. He will probably contradict himself 
half-a-dozen times before he has finished his story. He will often 
break down under the mildest process of cross-examination". 

I quoted Lord Cromer at some length so that you will 
understand why my reasoning will be of the most "slipshod 
description", why my explanations will "generally be lengthy and 
wanting in lucidity", why I will contradict myself half-a-dozen 
times before I am through and why I will break down under the 



My 



West 




guilty 



many of the vices for which it has lashed and will continue to 

hftratft the. develoninff societies of the Third World. 





224 HoIierThanThou — a Mild Critique 



The Orientalism that Dr, Said so meticulously chronicled in his 
book consisted of the sin of half truth added to half truth, 



misperception 



untruth 



this in the Neo Orientalism of our times about the Third World. 
You all must know, of cource, of the Third World that is generally 
a place of teeming millions, of mass poverty, of rampant 
corruption, of totalitarianism, arbitrary rule, authoritarianism, of 
anti-democratic regimes, of leadership by the few over the many, of 
oppressive exploitation, of chronic instability, of ethical 
degradation and moral decadence ? 



Whites 



World 



? Rich people are never called "teeming masses" of 
course; there are in fact more people per square foot in New York's 
Park Avenue or some of Paris' choice places of residence than in 
the slums of Calcutta. There apparently are no "teeming millions" 



lan 



millions 



World have higher per capita incomes than Britain or the United 
States. There are increasingly large numbers of citizens of the Third 
World who see more and more countries of the First World as the 
residence of ethical degradation and moral decadence. 



When 



World, I am reminded 
I of the Oriental mind. " 



his two-volume tome which sets out the majestic record of his 
awesome experience and magisterial achievements, entitled 
"Modem Egypt", Lord Cromer quotes Sir Alfred Lyall as having 
told him once that "Accuracy is abhorrent to the Oriental mind. 
Every Anglo-Indian should always remember that maxim". 

Cromer concurs. He says : "Want of accuracy, which easily 
degenerates into untmthfulness, is in fact the main characteristic of 
the Oriental mind". So please bear this in mind, ladies and 
gentlemen, as you listen to me. 







Holier Than Tliou — a Mild Critique 223 




Let me make certain things clear from the start. Let me make 

plain the point of departure, the context in which my remarks are 

set. Let me stress that I am no apologist for the Third World, of 

which my country is a member. I make no defence of the 

] obscenities that take place in many developing countries, the failure 

of many of their governments, the profound weaknesses of many of 
their societies. I am no admirer of the Second World. I am deeply 
committed to the free enterprise system as a means for uplifting the 
multitudes from the indecency of poverty. And I fully believe that 
the West has given much to this planet in terms of political culture, 
in terms of the techniques of production, in terms of civilising 
values where relevance and importance will conquer much that lies 



in their path. 



West 



West 



to us that is not altogether relevant, that is inferior. There is also 
much that the West can learn from the political culture of others, 
from the techniques of production of other societies and from the 
civilising values of the East and the Third World. 

In 1978 there appeared a book of outstanding accomplishment, 
written by Edward W. Said called "Orientalism". It was a work 
which analysed the ways in which the West discovered, invented 
and sought to control the East. "Orientalism", Said argues, is, 
among other things, a style of Western thought and a body of 
western belief, conventional wisdom and prejudice contributed to 



Western 



eeconomists 




intellectuals in general over the ages to the present day. 

Central to Orientalism is the idea of European identity as a 
superior one in comparison with all the non-European peoples and 
cultures. Let one Malaysian now mount a minor assault against this 
bastion of conventional assumption, a conventional assumption that 
is the more pernicious because it is an assumption that is still 
dominant in many countries of the Third World itself. 





222 Holier Than Thou — a Mild Critique 



He continued : "It came to an end; the mouths opened by 
themselves; the yellow and black voices still spoke of our 
humanism but only to reproach us without inhumanity. We listened 
without displeasure to these polite statements of resentment, At first 
with proud amazement. What ? They are able to talk by 
themselves ? Just look at what we have made of them ! We did not 
doubt but that they would accept our ideals ..." Jean Paul Sartre 
exaggerated. But by how much ? The world that he talked of was 
the world of Western domination, then of decolonisation, of the 
previous hundred years and of the first quarter century after the 
Second World War, which witnessed the greatest period of 
hberation in the history of the world. I do believe that we have now 
seen the second great wave of decolonisation, mental and 
psychological decolonisation, when the Third World has already 
begun to think not only for itself, but also to evolve its own 
systems, and its own values, drawn from the wisdom of both east 
and west, from deep within its indigenous soul as well as the 
external intrusions. 

I hope that the second wave is reflected in this speech, a speech 
I have been advised not to deliver, for fear of the international 
press, for fear of the intemational trade union movement, for fear of 
the strength of the strong in today's commonwealth of nations. 
What I say will, I fear, be distorted, taken out of context, misquoted 
and miscontrued. I will please neither the Right nor the Left. I will 
please neither friend nor foe. I will not please the First world, 
certainly. And I will not please even the Third World. 

So why do I enter the lion's den ? Why do I deliver this speech 
that is so unpalatable. I believe I must because it is time for the 
First World to come to terms with the new Third World - 
something it cannot do from high among the clouds. For me it is 
part of the breaking of the chains of steel that cabin the minds of 
most Third Worlders and that crib our character and our faith in 
ourselves. I believe that this Oxford University is a good place for 
the exchange of some home truths. 




25- Holier Than Thou 



a Mild Critique <*) 




My speech is entitled : Holier Than Thou 



Mild Ci 
1 World 



World 



of whose commentators and analysts continue to be patronising and 
unduly critical of us in the developing world. From their high 
pulpits they sermonise. From their comfortable armchairs they 
preach, in the columns of their newspapers and in the pages of their 
books they lecture, expound, declaim on all that is wrong with the 
Third World. 

In my address I will more than imply that those who are 
without sin should cast the stones, that those who live in glass 
houses should ponder the state of their walls before they venture 



World oueht to make 



;peak 



correct, knowledge that is grounded in fact, understanding that is 
not steeped in ignorance and arrogance. 

Jean Paul Sartre wrote in 1961 : "Not so long ago, the earth 
numbered two thousand million inhabitants : five hundred million 
men and one thousand fiVe hundred million natives. The former had 
the Word : the others had to use it. The European elite undertook to 
manufacture a native elite. They picked out promising adolescents : 
they branded them, as with a red-hot iron, with the principles of 
western culture. After a short stay in the "mother country" they 
were sent home, whitewashed. These walking lies had nothing left 
to say to their brothers; they only echoed. From Paris, from 
London, from Amsterdam we would utter the words ... and some 
where in Africa or Asia lips would open. It was the "golden age". 



(*) A Lecture at Trinity College. Oxford, 19.04.1985. 





220 The InterAction Council 




manage to prick the conscience of the powers that be, that would 
have done the world and the cause of the poor nations in particular, 
a great service indeed. 





The InterAction Council 219 



without any regard for the rest of the world. Thus, to solve their 



trade imbalances they decided to revalue the Yen and Deutschmark 
and undervalue the American dollar. For Malaysia, for example, 
this decision has pushed up her Yen loan by 70% while reducing 
her earnings from petroleum exports. And very much the same 
thing has happened to other developing countries. 

This is what happens when the rich become inward looking. 
Multilateralism is left battered, condemned to a slow death through 
fund deprivation. And the poor pays the price even as it gets 
poorer. 

We have yet to learn to accept the fact that we are 
interdependent. There are some who think that they can be rich in 
the midst of poverty. History has taught us little. It is almost as if 
someone is again saying, "if you have no bread, why not eat cake 
instead". 

Actually enriching the poor will enrich further the rich. After 
all we cannot escape from being the market for the rich. The more 
spending money we have, the more things will we buy from the 
rich. 

It is in this context that we see the role of the interaction 
Council. You may no longer be wielding power. But you do have 
influence. You are the conscience of the world. We welcome you 
here in Malaysia because we think the world needs its conscience 
now more than ever. 

The greatest achievement of the post-war years is the 
liberation of so many colonial territories. How tragic it would be if 
the good work done by far-sighted leaders of those years are 
negated by a slide towards a new and no less debilitating form of 
imperialism. We do not like to talk of neo-colonialism. A lot of 
work has gone into discrediting the word. But neo-colonialism does 
exist. The term is not important but the fact is. 

A few people, able and famous though they may be, cannot 
resolve all the problems that beset our planet today. But if you can 







218 The Inter Action Council 



their country to add value — these will obviate the necessity for 
them to decimate their beautiful forests. Boycotting the use of 
timber and turning to substitutes like plastic, will only impoverish 
them and force them to chop down more trees to maintain what 
little they have been earning. 

In Malaysia we are concerned about the environment too. But 
environment costs. There will be no pollution from palm oil 
factories, if the factories can afford to pay for pollution-control 
equipments. But when palm oil prices are forced down by 
subsidised production of competing oils, environment and pollution 
become secondary to the more pressing needs of earning minimal 
profits. 

Actually for most developing countries the problem of 
environment is academic. More important is development. Aid is 
important. Soft loans are welcome. But it is important not to take 
away with one hand what the other hand gives. Development aid 
will not help, if the resultant development is negated by restrictive 
trade practices. 

No country wants to live on aid forever. Every country wants to 
earn money for itself. This it can do only if there are no trade 
restrictions. The incentives offered by developing countries for 
export manufacturing can only be worthwhile, if the developed 
countries open their markets. 

The trade wars of the rich should not result in blanket 
restrictions which affect developing countries. Restrictions should 
be discriminating in favour of developing countries. The rich 
should be allowed to avail themselves of the favoured treatment of 
developing countries, if those countries themselves are unable to 
produce on their own. What matters is that the developing countries 
are able to reap some benefit which can contribute to their 
development. 




What 



make 






The InterAction Council 217 




it is told that it will be obsolete as an Improved version or a 
counter-weapon would be in the market in a year or two. 

Science has saved many lives, but one wonders what are these 
lives being saved for. Even as one wonders, the population keeps 
growing. We are told by Malthus that if we don't control population 
growth, we will outgrow our food supplies. Is this true ? Not for the 
present at least. We now have more food than we can consume. But 
such is the economic system we have created, that those who most 
need the food are unable to pay for it. And they are unable to pay 
because those who can afford have destroyed their means of 
earning sufficiently to buy the food. The fall in commodity prices, 
restrictive trade practices by the rich, unfair competition by the 
technologically advanced, control of the means of transport, the 
sponge-like soaking of investment capital by the rich and a host of 
other factors, have all combined to make the poor even poorer. 

And so the lives that science saves and the consequent growth 
of population have merely compounded the problems that plague 
our planet- Telling people not to multiply is not the answer, when 
the problem is in the economic injustice of a system that favours 
that rich and the powerful. 

The poor in this world have as much desire to breathe fresh 
unpolluted air as anyone else. They do want to live in an 
environment that is naturally clean and beautiful. Bhopal and 
Chernobyl horrifies them. But the problem is affordability. 

If they cut down trees for firewood it is because they cannot 
afford other fuels. If they tear down their ancient forests it is 
because they need the money from the timber they sell. If they treat 
their country like a huge mbbish dump, it is because they cannot 
afford expensive waste treatment and disposal. 

It is right to want to preserve the pristine beauty of nature. But 
if the only way for the poor countries to earn money is to export 
logs at very low prices, can they be blamed for tearing down their 
forests ? Pay good money for their timber and set up factories in 






216 The IntcrAction Council 



It is with this as a backdrop that you meet here in Kuala 
Lumpur. The theme you have chosen, "International cooperation in 
the areas of population growth, environment and development", is 
thus most appropriate and relevant. The considerable influence that 
you still wield, would, we hope, lend meaning to your 
deliberations. 

Within the space of some twelve years from now history will 
record the flow of time into not only a new century, but also a new 
millennium. Rightly we should be moving into the twenty-first 
century with a sense of pride and accomplishment considering the 
tremendous strides that mankind has achieved in the twentieth 
century. We have seen the world undergo a massive transformation 
particularly in technological terms. The scientific achievements that 
have come about are particularly astounding in the fields of 
communication, transportation, medicine and space. Many of us 
today fly around the world in a 747 without so much as a minute's 
reflection upon the fact that the whole aircraft is about twice as 
long as the distance the Wright brothers were airborne on their 
maiden flight only eighty years ago. 

In our enthusiasm for the good life made possible by science 
and technology, we often forget about the miseries which 
accompany this so called progress. There is a price to be paid for all 
this progress. Far too often it is the poor who have to pay. Thus the 
miracle of laser and fibre optics have forced the closure of copper 
mines with the accompanying unemployment of workers in 
developing countries. Pollution from chemical wastes have blighted 
the lives of many, of which Bhopal is just one poignant example. 
Advances in the technology of food production should reduce 
starvation. They do, but they also impoverish the farmers of 
developing countries by the resulting gluts and drops in prices. 

The art of war has become the science and technology of war. 
As new weapons and counter-weapons are invented the meagre 
treasuries of poor countries are emptied in an attempt to acquire 
expensive defence systems. Even as a country buys a new weapon 





24- The Inter- Action Council <*> 




Decisions in the national interest in these days cannot help but 
affect neighbours, regions and the world. This is especially so with 
powerful nations. It is important and imperative that there be 
greater accountability not just to the nation but to the world. World 
leaders are now truly world leaders, not just leaders known to the 
whole world. International fame must carry with it international 
responsibility as well That responsibility cannot just cease because 
one is out of office. The world should continue to benefit from the 
experience and knowledge that you have accumulated while in 
office. I believe that it is because you do feel responsible that you 
have founded the InterAction Council of world leaders. In a world 
gone slightly unbalanced your wise counsels are much needed. 

You meet today in an atmosphere that is highly charged. Trade 
imbalances have led to tension and threats among the rich nations 
of the North. Currency has become totally destabilised. Commodity 
prices have collapsed. Nations are incapable of paying their debts. 
The East- West confrontation and the arms race continues and 
absorbs much needed funds for totally useless unproductive 
activities. The wars in the Middle East show no sign of abating. 
Religious and racial tensions have grown, fanned by fanatics and 
racists. Proxy wars are being fought in Central America and Central 
Asia. In the Sahel belt of Africa starvation and death stare in the 
eyes of millions. And to top it all drug habits have destroyed much 
of the flower of our youths, bringing crime and disaster to people 
who are already impoverished. 




(*) A speech at the 5th Session of the Inter-Action Council. Kuala Lumpur, 19.04.1987. 





214 Drug Abuse and Illicit Trafficking 

values. Man, clear and steadfast in his commitment to progress, can 
bring about bountiful advancement to all humanity. We can today 
mine the oceans and the moon, direct electronic signals and laser 
beams through the atmosphere and travel in outerspace. The genius 
of man by the grace of God seems to be boundless. Let us then not 
destroy this promise of a better future by succumbing to the ravages 
of drugs abuse. 





Drug Abuse and Illicit Trafficking 213 

The drug problem that confronts us is of such magnitude, such 
complexity that an effective counter would require our fullest 
commitment, cooperation and sustained action. Our efforts cannot 
end here at this Conference, The campaign should rightly form a 
part of the main agenda of the United Nationsl Programme for the 
1990s, 

I personally envisage the usefulness of follow-up meetings, in 
particular the convening of inter-regional gatherings of experts and 
policy makers to be assisted by the United Nations where 
appropriate, to examine in greater detail every aspect of the drug 
problem. This meeting should be an inspiration for us to follow 
through at regional and national levels, the suggested ways and 
means of fighting the drug war. We must return from this 
Conference with steely resolve to win the war at home. The 
Conference is only a success if the joint-efforts and cooperation it 
generates are translated into genuine and sustained actions 

domestically. The global war against drug will never be successful 
if nations continue to maintain passive resistance even after this 
Conference. 

The struggle that we are engaged in today is a struggle for the 
minds and hearts of every individual in every country in every part 
of the globe. The reason for the rapid spread of the international 
drug problem has been our failure to reach the minds of our people 
to alert them to the real dangers that drug abuse portends and the 
havoc it can create. The tide of the battle cannot be turned around 
until we have raised that level of awareness that drug kills and that 
drug destroys. We have to correct the fallacy that drug addiction 
happens only to someone else's child but never ours, that the source 
of the problem lies in some far-away land but never at home. The 
battlefront is in each individual household, each community, each 
country. 

Today, the genius of our scientific achievements are creating 
tremendous changes in the relationship between man and his 
environment. They are also putting to test various norms and 







212 Drug Abuse and Illicit Trafficking 



and information, law enforcement assistance, and training and 
research. 

We welcome the role played by the World Health Organization 
(WHO). The WHO has the difficult task of carrying out the 
responsibilities assigned to it by the international drug control 
treaties. It plays a pivotal role in helping to determine which 
substances should be placed under international control in 
accordance with the provisions of the 1961 Single Convention on 
Narcotic Drugs and the 1971 Convention on Psychotropic 
Substances. 

The contribution made by the International Labour 
Organisation is also significant. Its work focuses on drug abuse in 
the workplace and on vocational rehabilitation and social 
reintegration of drug dependent persons. 

Of equal importance is the prevention of drug abuse through 
public education and awareness and this has been a primary 
preoccoupation of the United Nations Educational, Scientific and 
Cultural Organisation (UNESCO). The integration of preventive 
education concerning drug use into school curricula and out-of- 
school education, is one of the most effective measures for averting 
the serious consequences of drug abuse among young people and 
adults. 

There are of course many other institutions and organisations. 
Strengthening these intemational institutions and their programmes 
of work will contribute to national, inter-regional, regional and 
global efforts in accelerated programmes to counter the growing 
drug menace. 

For this Conference, extensive groundworks have been 
prepared by the two sessions of the Preparatory Body held here in 
Vienna in February 1986 and February 1987. It is my hope that all 
these groundwork, the result of collaborative and cooperative action 
by all participating delegations, will develop into an agenda for the 
1990s for the United Nations system in the continuing campaign 
against drug abuse and illicit trafficking. 





Drug Abuse and Illicit Trafficking 211 





given to addiction, to enable them to return as useful members of 
society is unquestioned. These, should be our primary and rightful 
focus. 

In the context of national efforts, many countries are already 
compelled to exert the required political will to act against the drug 
threat because of dire necessity. The experiences of many have also 
taught us an important lesson; that to effectively counter the drug 
problem, action must be undertaken in a coordinated manner and 
directed by the highest political level working in tandem with the 
administrative and judicial system in the country. No means can be 
spared. The struggle against drug abuse and illicit trafficking must 
also be undertaken at the social and economic level. 

Internationally, regional collaboration in the fight against drug 
abuse and illicit trafficking has been relatively well developed. This 
is evident in Latin America, in Europe, the Middle East and 
ASEAN — but there is room to increase these regional efforts 
particularly among states that have become staging posts for the 
transit of illicit drug consignments. Perhaps a major weakness 
which this Conference can address, is the inter-regional cooperation 
which is still in its early stages of development. While there has 
been cooperation between the European Economic community and 
ASEAN, there is strong potential for developing such cooperation 
between the sub-regions of Asia, Africa, Western Europe and the 

Americas, 

Another major focus is to strengthen the role of international 
institutions to supplement the national, regional and inter-regional 
efforts. Here I must commend the 40 years of good work done by 
the United Nations' system in the global effort to combat the drug 
problem. Of the implementing agencies, impact has been made by 
the United Nations Fund For Drug Abuse Control (UNFDAC) 
whose projects cover the entire range of narcotic control activities 
including integrating rural development and crop substitution, 
treatment and rehabilitation of drug addicts, preventive education 






210 Drug Abuse and Illicit Trafficking 




Conference Secretariat to produce the Comprehensive 
Multidisciplinary Outline (CMO) of future activities on drug abuse 
control which is being examined and finalised for adoption as 
possible guidelines for specific project development and for 
implementation at national, regional and international levels. What 
this Conference should focus upon is the manifestation of the 
political will to act in concert against the drug menace. The 
significance of this cannot be over emphasised. 

How this manifestation should be expressed is for this 
Conference to formulate. Its major significance lies in that 
Governments, henceforth, will be reminded of their commitment 
expressed at this Conference, to act together to effectively combat 
drug abuse and trafficking as a global problem. For the 
international drug problem has assumed such scope and extent that 
an effective campaign against it cannot be mounted without 
international cooperation. 

The expression of commitment that must emanate from this 
Conference is important, not only as a reference and reminder of a 
Government's moral obligation, but it must also be a powerful 
message to the drug traffickers that their activities cannot continue 
with impunity — that henceforth, there will be a heavy price for 
them to pay. 

Equally important is the message to the international 
community, to public opinion, the ordinary man in the street, that 
their Governments are now agreed to act in concert against those 
traffickers who have brought misery and havoc to their 
communities. Let us show that we are indeed doing so by ensuring 
the early adoption of the new convention against illicit traffic in 
narcotics and psychotropic substances. 

For all these messages to get through, for their objectives to be 
understood and to be realised, it is important that this Conference 
approaches the drafting of its decisions clearly, so that there can be 
no ambiguity about the determination to eliminate illicit drug 
trafficking is unequivocal and their resolve to help those already 





Drug Abuse and Illicit Trafficking 209 




whole can only mobilise a budget of several hundreds million 
dollars. This is but one measure of the inadequacy of our response. 

Our inadequate response is perhaps symptomatic of our 
different perceptions. For some Governments in consuming 
countries, drug abuse and addiction is held to be a social aberration, 
akin and on the same level as cigarette smoking and alcoholism; for 
many in the producing countries, the dilemma is more fundamental. 
Social restructuring becomes a major and sensitive problem as 
production has historical and cultural roots. Finding an alternative 
to what many hill tribesmen and villagers have come to consider as 
a primary source of income will be a challenge for Governments in 
these producing countries. For transit countries, the frustration is 
how to stem the flood caused by the enormous profits that 
trafficking generates and equally important is how to prevent drug 
addiction and to rehabilitate those who have become addicted either 
as a result of the availability of drugs left unsold because of 
interdiction in consuming countries or as a result of demand from a 
home-grown addict population. 

A most serious manifestation, for a growing number of 
countries in Latin America, North America and South East Asia is 
that the drug problem has become a security problem with 
implications for the country's continued viability and the 
maintenance of its national sovereignty. 

Against this background, it is my view that this Conference is 
not only to work out or negotiate specific programme proposals for 
implementations. This will be largely the task of the competent 
technical bodies such as the Commission on Narcotic Drugs, the 
International Narcotics Control Board, the United Nations Fund for 
Drug Abuse Control, in the first instance and many other UN 
agencies such as the World Health Organisation, the International 
Labour Organisation, the United Nations Educational, Scientific 
and Cultural Organisation, and the relevant chapters of non- 
governmental organisations. The two sessions of the Preparatory 
Body for this Conference had established valuable guidelines to the 







208 Drug Abuse and Illicit Trafficking 



Today we bring to fruition more than two years of painstaking 
preparations. But we are also setting out on a new beginning. The 
start of an important quest — that of seeking and galvanising the 
political will of all nations to act in concert against the plaque that 



has afflicted the international community — the pervasive spread of 
drug abuse and illicit trafficking. 

It is not true that the United Nations lacked a programme 
against drug abuse. On the contrary, the United Nations had 
continued the work of drug control functions formerly carried out 
by the League of Nations. It was under UN auspices that the 1961 
Single Convention on Narcotic Drugs was adopted. This represents 
a significant effort by the international community to bring together 
various decisions and agreements into a coherent and effective 
entity. The 1961 convention was subsequendy amended by the 
1972 protocol- Additionally in 1971, following a clear realisation of 
inherent inadequacies in the 1961 convention, the Convention on 
Psychotropic Substances was adopted. In 1981, the UN General 
Assembly adopted the international drug abuse control strategy 
aimed at combatting drug abuse and illegal trafficking. This 
evolved into a 5 year programme of action in 1982. In 1984, the 
Assembly by its declaration on the control of drug trafficking and 
drug abuse, declared that trafficking in narcotic drugs, and drug 
abuse had become an 'international criminal activity', demanding 
the most urgent attention and maximum priority of the international 
community, and that eradication of illicit trafficking in narcotic 
drugs was the collective responsibility of all states. 

Clearly, therefore, there was no lack of intention or 
programme on the part of the UN; rather it had been the inadequate 
commitment, the insufficient manifestation of the political will in 
many producing, transit and consuming countries to act in concert 
against this common problem that has allowed the rapid spread of 
drug abuse and illicit trafficking. One unofficial estimate put the 
size of the global trade in illicit drugs at US$ 300 billion, a mind 
boggling figure, but to counter this, the United Nations system as a 







23- Drug Abuse and Illicit Trafficking^*^ 




I am very grateful for the honour you have conferred on me, to 
preside over this Conference on Drug Abuse and Illicit Trafficking. 
I can only promise that I shall do my utmost to ensure the success 
of this Conference. I accept this heavy responsibility with some 
trepidation but I am confident that I shall be guided by your 
collective wisdom and the unswerving unity of purpose on an issue, 
a scourge, that spares neither individual nor institution. We have 
before us an important task, a fateful one. In the next several days 
we must harness all our determination and our expertise to chart a 

clear programme to rid us and the society we live in, of the cancer 
within our midst; drugs and the peddlers that make profit of human 
misery. Let us therefore work towards ensuring that we accomplish 
this task to the best of our abilities in order that the world will 
benefit from it. 

Time and effort move on a continuum. It is a truism that major 
achievements of Man have been the result of hard work in a 
continuing process — of responses to changes and challenges in 
dynamic situations. It is equally true that major achievements have 
been possible, when we pause along the way to take stock of the 



make 



course. 



Our meeting today has this significance — this opportunity to 
look critically at our work, at what we have done in the past, that 
will heln us imorove and take timelv decisions for the future. 



(*) A speech at the International Conference on Drug Abuse and niicit Trafficking. 
Vienna, 01.06.1987. 






The 




that we 



St be a recession soon. But if we don't, then it is imperative 
— and here I mean not just the economists but also the 
world leaders — must learn the lessons of past slumps and booms 
and devise ways of avoiding the impending recession. The will to 
do this must be exhibited and we must get away from the pressure 
exerted by narrow sectarian interests even if it means ignoring 
some of the current interpretations of democratic rights. 

The present recessionary economic situation is man-made and 
it must be unmade bv man. 







204 The Global Economic Crisis : Will 1 988 be Another 1928 ? 



and we must have it even if it kills us. I am 



reminded 



of the American who said, "I don't agree with what you 
said, but I will die to defend your right to say it" or words to that 
effect. It is very noble but if everyone dies, including the person 



be 



who is free to speak, 
that freedom anyway. 



We must have democracy. But we must define its limits. We 
cannot allow democracy to kill us. If democracy prevents leaders 
from doing the right thing for the good of mankind, then let us 
redefine it. If we are to save this world from the economic chaos we 
are in, leaders must be able to free themselves from the pressure of 
the need to be popular and take the necessary action. This is heresy, 
of course. But let us remember that the sacrosanct ideologies we 
believe in today, are the heresies of yesterday. 

Coming from the developing world, I cannot help but be 
biased in favour of the Third World. But the fact remains that we 
are interdependent, now more than ever before. Just as the 
economic performance of the rich North will affect the performance 
of the South, so will the prosperity or poverty in the South affect 
the North. If I talk for and of the South, interdependence implies 
that I am also talking for and of the North. 

As Hodson said, "In general the prices of raw produce fell 
more rapidly than those of goods at the later stages of manufacture, 
a fact which temporarily assisted industrial countries .... but which 
could not do so for long, since their market abroad (in the raw 
material producing countries) were being concurrently 
impoverished". What Hodson means is that if there is a slump in 
the Third World, sooner or later there will be a slump in the 
developed countries. 

There is a slump in most of the Third World countries now. 
The question is, will there be a slump in the developed countries 
next year or the year after — in other word will there be a Global 
Recession in 1988 or after ? If we believe in the 50-vear cvcle, then 







The Global Economic Crisis : Will 1988 be Another 1928 ? 203 



during the slump of the late twenties. The fact is, of course, the 



We 



We 



prosperity amidst poverty or poverty amidst prosperity within 
countries, between countries, and between regions. 



We 



We 



and 



Some countries accumulate huge reserves trading with countries 
with huge deficits. Where normally prosperity in developed 
countries have beneficial effects on poor countries, now we see rich 
countries getting richer at the expense of poor commodity 
producing countries. 

In the developed countries, stock market prices go through the 
ceiling even as record numbers of banks go through the floor. 
Companies make little profit but their shares go up in value quite 
independently. Billions of dollars boost the value of junk bonds 
while real business suffer because they are considered not 
creditworthy. 

Obviously this is not a slump. It is a case of the world's 
economy going haywire. We are in a madhouse. The need is for 
sanity. Confrontationism, isolationism or protectionism are about as 
helpful as a hole in the head. More than at any other time we need 
to sit down and talk to each other as sane people. 

Democracy is wonderful. Leaders should be elected by the 
people, or at least the majority of the people. But this need to be 
popular has resulted in some Governments losing their political 
will. European leaders, for example, have little time for economic 
principles or historical lessons. They are busy pandering to the 
views of the farmers who are illiterate in economics or history, but 
whose votes determine whether the politicians get seats or not. And 
so, despite their better judgement they subsidise and protect 
farmers; thus giving rise to the butter, meat and sugar mountains. 





202 The Global Economic Crisis : Will 1988 be Another 1928 ? 




Yet we have had boom times in the world's economy. The 
1960's and 1970*s were definitely prosperous years for most of the 
world. Even the poorest and least efficient economies suffered less 
because prosperous countries were prepared to give them aid. We 
must also remember that we did come out of the massive slump 
after the First World War, We must have done something right to 
be able to prosper after a period of economic slump. If we study 
carefully the situation before and during the prosperous years, there 
is bound to be something which happened to help the recovery and 
the subsequent boom. 

Situations have changed, of course. The solutions of yester- 
year cannot be the solutions of today. But there must be some 
lessons from the historical past. Human ingenuity is such that we 
cannot just be fatalistic and accept the theory of 50 year cycles. 

But how many of the people who determine economic 
policies which affect the world really study the depression of the 
late twenties and the subsequent recovery ? Is war the answer ? But 
we know that the economies of all beliigerents suffered as a result 
of both the first and the second World Wars. 

Somewhere in the prosperous years, there is a solution waiting 
to be found. And it is more likely to be found if the North can sit 
with the South and listen to each other. If the Group of Seven had 
heard Malaysia's views they would not have forced the value of the 
Yen up so much, that suddenly our external debt is doubled. 

I am not saying that the mere listening to the views of the 
developing countries would result in a foolproof plan for economic 
recovery. Some countries of the South are possibly irresponsible 
and extreme. But the participation of a small representation from 
the South would help in highlighting the effect of any policy on the 
South, and the subsequent effect on the North if the South prospers 
or if it is impoverished. 

At the beginning of this talk I said something about not 
learning from history, implying that the situation now is like that 




The Global Economic Crisis : Will 1988 be Another 1928 ? 201 



For a long time the South or the developing countries begged 
for a New International Economic Order. The North saw in this 
another attempt to extract aid from them. Accordingly they formed 
the Group of Seven and imposed a New International Economic 
Order of their own. It must be painfully obvious that it is not 
working. It fails to solve even the problems between the members 
of the Group, Why else should the U.S. clamour for its very own 
protectionist policy, if the currency manipulation and other 
measures adopted by the Group of Seven had worked ? 

Indeed, far from solving the problems, the exchange rate 
adjustments have worsened the situation. Developing countries 
unable to service debts now simply refuse to pay. There was much 
protest by the banks in the North but finally they are forced to 
provide for these bad debts, and weak banks are going bankrupt by 

the dozens. 

The South admits that they cannot do without the North. But 
then they cannot hope to be heard if they speak with a hundred 
voices. And so the South have decided to set up a Commission. The 
South Commission, as it is called, is presided over by Dr. Julius 



areas 



between 



dependence on the North. But it should be within the scope of the 
work of the Commission to formulate effective representation for 



the South in any North-South forum intended to correct the world's 
economic problems. 

Admittedly the record of the attempts to cure the economic ills 
of the world is not very encouraging. Certainly what has been done 
lately has not had the desired effects. As we can see strengthening 
the American dollar and raising interest rates has been no more 
effective than weakening the dollar and lowering interest rates. 
Protectionism has not been successful. The EEC economic policies 
simply resulted in mountains of butter, sugar and meat due to 
artificially high prices and costly subsidies. 







The 




Economic policies cannot be expected to yield only one 
desired result. Just as Germany cannot be made to pay reparations 
after the First World War without disrupting the worlds economy, 
so today there can be no single remedy for the economic ills of a 
rich state, which will not have undesirable effects on itself and on 
other states. The more drastic the solution, the greater the side- 
effects on itself and on others. This being so, it is important that 
powerful economies do not devise economic policies in the absence 
of the weak. 

Multilateralism has now become a bad word among 
developed countries. The disillusionment with the United Nations 
has led to the setting up of exclusive rich men's club. The Group of 
Five is an alliance of the rich which must inevitably work against 
the interest of the poor. The five has now become the Group of 
Seven, again unrepresented by the poor countries. 

Although in Venice the seven discussed the problems of the 
poor, it is doubtful that they fully appreciate these problems. It is 
even doubtful that they take into account that the increasing poverty 
of the poor will adversely affect their own economic performance. 
It is worthwhile remembering that the Third World accounts for 
40% of the exports of the world*s biggest economy. As a market the 
non-socialists third world is bigger to the U.S. than Westen Europe, 
Eastern Europe, the Soviet Union, Australia, New Zealand and 
China put together. Economic depression in the Third World is one 
reason why the U.S. will continue to have difficulties in reducing 
its trade deficit. 

If we are going to find a solution that will work somewhat 
better than the currency manipulation which is the main result of 
the Group of Seven meetings so far, we must return to 
Multilateralism. If having 150 different countries sitting together to 
formulate a solution is impractical, then there should at least be the 
presence of a few representatives of the poorer countries when the 
Group of Seven meet. No action should be taken until the 
representatives of the poor have been given a hearing. 





The Global Economic Crisis : Will 1988 be Another 1928 ? 199 




world's financial system. Extravagant as the oil producers were, 
they still could not spend all their money. All kinds of restriction 
prevented them from buying into the major industries of Europe 
and America. Inevitably the petro-doUars found their way into the 
vaults of European and American banks. The stage was even 
reached when Arab oil producers had to pay to keep their money in 
the bank. 

The petro-dollars must be lent out. Only nations can borrow 
huge sums. And so sovereign loans became the main business of 
western banks. Nor were the Arabs allowed to withdraw their 
deposits because it would disrupt the financial stability of the 
western countries. On the other hand the fall in commodity prices 
undermined the capacity of the borrowing countries to repay their 
loans. 

Simultaneously the United States discovered that a strong 
dollar and high interest rates was not helping its economy. The 
balance of trade was very much in favour of the old foes 
Germany and Japan. It was decided that it was better to devalue the 
U.S. dollar against the Yen and the Deutschmark in order to reduce 
Japan^s and Germany's exports to America. The idea did not work 
for the U.S. as predicted by many economists and international 
decision makers. Japanese and German goods kept pouring into the 
U.S. Meanwhile commodity producers, including oil producers, 
who sell in dollars suffered as the dollars earn less in terms of 
purchasing capacity. The oil producers not only earned less but find 
their external reserves much diminished in value. Of course, 
countries that borrow in Yen or Deutschmark suddenly found 
themselves even more indebted than before. 

Since the U.S. is not getting much benefit from the de facto 
devaluation of the dollar, protectionism began to look more and 
more attractive. The target is Japan, but the developing countries 
are dragged willy-nilly into the maelstrom. The U.S. now talks of 
balanced trade even with its smaller developing country trading 
partners. 







198 The Global Economic Crisis : Will 1988 be Another 1928 ? 




economic disorder and it must be indicative of the economic 
disorders that were to follow. But the leaders of the period 
continued with their punitive approach against Germany. The result 
was the 1929 slump and the rise of extremism as portrayed by 
Nazism. 

Partly as a result of that experience there was less desire to 
punish the defeated countries after the second World War, Except 
for dismantling the huge industrial conglomerates thought to have 
been responsible for sustaining the war machines, the Allies 
adopted a more liberal attitude towards Japan and Germany. The 
result was a very quick recovery for these two dynamic countries, 
which in time posed a threat to the economies of the U.S. and some 
European countries. 

So far, sc good. The lessons of the post World War One were 
well learnt and applied. But the U.S. and the Western Allies then 
began to feel threatened by the economic power of the two former 
enemies, and an easy solution was looked for. First interest rates 
were raised and the American dollar was effectively revalued 
upwards. Much money flowed to the U.S. but, at the same time, 
U,S. goods and services became uncompetitive. This in turn 
resulted in more foreign goods being imported while American 
industry declined and unemployment consequently increased. 
Shortly after, there was a contraction in the purchasing power of the 
Americans which must affect adversely new investments and 
production. The economy deteriorates further. As the American 
economy deteriorates, raw material exporters began to lose their 
markets. Prices and earnings went down. To earn more, the 
commodity producers produced more and prices went down 
further. 

Elsewhere the oil producers were smarting over the minimal 
royalties they earned from the strategic commodity they produced. 
The conduct of the Arab-Israeli War gave them the excuse for 
raising oil prices. Suddenly the world was flooded with 
petro-doUars. Such huge sums of money cannot but destabilise the 




The 





Let me make myself perfectly clear. I am not predicting 
that the world will enter another global Great Depression, although 
I feel that for most of the countries of the South, that second Great 
Depression descended quite some time ago. 

Some people have seen close parallels between the New York 
Stock Market boom of 1929 and recent developments in Wall 
Street. Certainly the world has not seen in the last two years such a 
bull run or so many American banks going bankrupt since 1929, 1 
am told that there is this Kondratieff economic long wave cycle 
theory which seeks to explain the great depressions of the 1830's, 
the 1890*s and the 1930's in terms of a cycle of 45 to 55 years; 
according to which we should have a great depression descending 
upon us any moment now. 

But the economy of the world is not governed by the 
movements of the stars or the planets. It is created and managed by 
men. In this day and age, we do not consult astrologers or 
astronomers before adopting economic policies. We study and we 
plan. Surely no one would plan for a slump. What has happened is 
that we have forgotten the lessons of history and we repeat our 
mistakes. If the same people lead for longer periods, perhaps 
mistakes will not be repeated. But, of course, there will be other 
prices to pay. 

In the years after the First World War, the victors forced 
vanquished Germany to pay huge war reparations. Obviously if 
Germany had to pay out so much, It must also earn so much or 
borrow the required sum. Thus the beginnings of economic 
distortions were set in motion by the leaders themselves; leaders 
who had apparently not read history. 

Germany, perhaps more than any other country was thoroughly 
disorganised industrially after the World War. Hodson pointed out 
that "the economic history of the whole of the first post war decade 
is a tale of attempts to meet or to defy the disorders that the war had 
wrought in the World's economic system." The 1919 boom which 
was followed by a collapse in 1920 was symptomatic of the 






196 The Global Economic Crisis : Will 1988 be Another 1928 ? 



"The combination of different or harrassed lenders and 
weak or even bankrupt borrowers automatically 
prevented the revival of international lending on the 
scale of earlier years. 

Le me continue to quote : 

"In general, the prices of raw produce fell more rapidly 
than those of goods at the later stages of manufacture, a 
fact which temporarily assisted industrial countries .» 
but which could not do so for long, since their markets 
abroad were being concurrently impoverished. 

"The purchasing power of raw-material producing 
countries enormously diminished. Markets contracted, 
profits fell, production was curtailed, buying of stocks 
was restricted, and prices dropped still further .... 

"The fluctuations in international lending, the 

embarrassments of debtor countries, the fall in prices, 
the depressed conditions in the creditor countries, all 
naturally had a profound effect upon the volume and 
distribution of world trade „., 
"The slump, once started, continued a swift and snowball 



career. 



)) 



One may be excused if on hearing these quotes one gets the 
impression that some present-day writer was writing about the 
present world economic situation. 

Mr. Hodson wrote a great deal on the causes and the course of 
the Great Depression, not much on the political consequences. But 
he did write on the social changes and political upheavals, 
including the growth of extremism in Germany. Writing as he did 
in 1938, Mr. Hodson might be forgiven for not having a clue at all 
about the profound meaning of the ascendancy of Adolf Hider and 
the Nazis in Germany. Mr. Hodson was no specialist on Asia and 
Latin America. He can therefore also be forgiven for having little 
inkling of the almost immediate effects outside Europe. 





22- The Global Economic Crisis : 

Will 1988 Be Another 1928 V 




Making speeches is the favourite occupation of politicians. In 
the course of years of doing this, one develops a fondness for 
certain quotes. For me the favourite quote is George Santayana's 
**Those who do not learn the lessons of history are condemned to 
repeat their mistakes over and over again". I would like to repeat 
this quote in this speech because it deals mainly with the current 
economic situation, and for those who have gone through the 
recession of the late twenties or at least read about it, they must 
have this "deja vu" impression when studying the present world 
economic situation and its political consequences. 

A great book to read and to remind us about the Depression or 
the Great Slump of the late twenties and early thirties is H.V. 
Hodson's "Slump and Recovery, 1927 - 1937" published by your 
Institute in 1938. Perhaps quoting a few paragraphs from this book 
would explain why I said that we have gone through it all before. I 
quote : 

"The fall in commodity prices proceeded with only 

intermittent relief. The pressure upon debtor countries 
to sell at cut prices had been grievously enhanced by the 
reduction in lending. 

"The abrupt curtailment of international lending - 
however wasteful and unjustifiable some of the 
previous loans may have been - had dislocated world 
trade and depressed commodity prices ,..» 




) A speech at the Royal Institute of International Affairs. London - 21.07.1987. 





194 The Commonwealth Heads of Government Meeting 

and forces at our disposal. The cost will be high but the price we 
will have to pay if the drug menace spreads, will be far higher. We 
are seeing this now. Extradition, confiscation of all proceeds from 
drug trafficking and severe punishment for traffickers must be 
universal. It is the laxity of some nations which has caused the drug 
habit to spread. Remember that along with the drug habit will come 
AIDS. Those who advocate leniency are guilty of spreading AIDS 
as well. We must act now- 

In conclusion, let me state that the relationship which binds the 
Commonwealth together can be enormously rewarding. There is 
much that we can do for each other and for the world if we set our 
mind to it and we act. Malaysia in a way has rediscovered the 
Commonwealth. We admit that we were at one time disenchanted. 
But in an increasingly interdependent world the commonwealth 
provides an important forum for the discussion and even the 
settlement of some international problems. We also see a role for 

ourselves in the Commonwealth, small though it may be. We pray 
and hope that the Commonwealth will, in this era of rapid and 
radical change, live up to the expectations of its members. We hope 
the Kuala Lumpur Commonwealth Conference will contribute 
towards this end. 








The Commonwealth Heads of Government Meeting 1 93 

testing, excessive use of fossil fuels, private transportation, release 
of CFC into the atmosphere, massive wastage of paper, toxic 
chemical disposal, all these and more are the direct result of the life 
style of the rich. 

Poverty, of course, contributes towards environmental decline, 
but it is only because the poor cannot help themselves. If they are 
denied the few resources they have, they are going to become 
poorer and would cause even greater environmental degradation. 
On the other hand, the rich can afford not only to reduce their waste 
generating life style, but can expand more on reafforestation of the 
agricultural land they had wrested from their forests. With their 
technology and their wealth they can actually make millions of 
acres of desert bloom. 

Unfortunately the line taken by environmentalists is to lay the 
blame on poor countries and seek to force them to slow-down their 
development in the interest of restoring the environment which the 
rich had polluted. Even World Bank loans are now to be made 
conditional upon environmental consideration. 

We agree that concerted international effort is needed. The 
Commonwealth can help by bringing some sanity and balance to 
the current debate. We all must share the burden of keeping our 
environment livable, but, the sharing must be fair and in accord 
with the means at the disposal of each of us. The poor must not be 
made to pay for the past and present sins of the rich. 

Another problem which transcends national boundaries and 
which requires a global approach is the drug problem. Malaysia 
makes no apology for the severity of our punishment for drug 
traffickers. We see today how very serious the problem can 
become. Whole Governments are being threatened, subverted and 
corrupted by the drug traffickers. Alone, many nations may just go 
under. Only a combined and coordinated antil drug trafficking war 
by the international community can hope to defeat this evil and 
prop up Governments against the violent assaults by the merchants 
of death. An all-out global war must be waged with all the money 







192 The Commonwealth Heads of Government Meeting 




can must pay, but consideration must be given to those who truly 
cannot. 

Yet another dimension of the problem is the increasing attempt 
by the G-7 to interfere decisively in the management of the global 
financial and trading system. Their decisions to realign currencies 
have not only severely affected the debt-servicing burden of 
developing countries but also the resource flows and their growth 
prospects. 

Problems of debt and poverty cannot be overcome while 
significant disparity exists between the economic growth rates of 
the developed and the developing countries. Developing countries 
need better access to markets and a greater flow of foreign 
investments not only for economic growth but also to provide them 
the means and the capacity to service their debts. 

For world trade to grow, the principles of an open and fair 
multilateral trading and payment systems must be upheld. While we 
try to reduce tariff barriers, and stimulate global trade, we are now 
threatened by a discemable increase in non-tariff barriers. Further, 
the focus has shifted from "free trade" to "fair trade". Industrialised 
countries are increasingly demanding reciprocity even as they deny 
the developing countries tariff concessions and preferential 
treatment. This is evident in the current Uruguay Round of the 
MTN. Pious pronouncements have been made on interdependence 
and the importance of multilateralism. But they are contradicted by 
the actions of those who make them. Bilateralism and regionalism 
are being allowed to gain, at the expense of an open multilateral 
trading system. 

The environment is now a matter of grave concern to everyone 
including the developing countries. The degradation of the 
environment can no longer be ignored, and urgent solutions must be 
found. Unfortunately, many developed countries seem intent on 
laying the blame for the world's environmental problems on the 
developing countries. Yet by any measure, it is the developed 
countries which have most assailed our environment. Nuclear 






The Commonwealth Heads of Government Meeting 191 




We must be vigilant that recent developments in Southern 
Africa do not obscure the central issues of Apartheid. We must not 
allow the racist Pretoria regime to deflect us. The establishment of 
a democratic, truly non-racial, unitary and representative 
government in South Africa must remain the principal objective of 
the Commonwealth. We must not think of settling old scores. 
Whites, blacks and coloured must live together in amity. 

There may be cause for hope and encouragement with regard to 
the global political scene, but the world economic trends are not so 
propitious. While nearly all of the developed countries still manage 
modest growth, many of the developing countries are experiencing 
stagnation if not negative growth. The rich countries have 
apparently ganged up against the poor. They have arrogated to 
themselves the right to direct world trade, and to manipulate 
currencies to their advantage. Subsidies, quotas, tariff and non- 
tariff barriers by the rich have distorted costs and supplies 
worldwide. Now environment and human rights are to be used to 
hamper economic development in the developing countries. 

On the question of poverty, especially in Africa, our response 
cannot simply be assistance alone. The linkages of poverty to debt 
and trade — and even to the environment — must be recognised 
and addressed. The debt burden of the poor is getting heavier. 
An unacceptably high percentage of their GNP is spent to service 
debts, resulting in a reversal of the net flow of funds between the 
rich and the poor. For the poorest the situation is hopeless. The 
African debt problem continues to deteriorate — largely unnoticed. 
Part of Africa's problem is that the countries concerned simply do 
not owe enough to pose a threat to the international financial 
system. Hence, the scant attention to African debts. 

What we need is a bold financial initiative. Such a plan would 
have to recognise that existing debts, public and private, are not 
worth their full value, and that most African debtors cannot sustain 
full debt-servicing. Making debt-slaves of whole nations is worse 
than the inhuman practice of debt-slavery in the past. Those who 





190 The Commonwealth Heads of Government Meeting 



There is some momentum towards superpower detente. We 
cannot assume that as they resolve their differences, our interests, 
especially those of the developing world, will not be sacrificed. We 
must be mindful of this. We must be able to forecast and to 
pre-empt. Peace will carry a cost. That cost must be equitably 
shared. 

In West Asia ceasefire arrangements are now in place which, 
hopefully, will lead to an end to bloodshed. The Palestinians 
continue to be deprived of their homeland. Israeli security may be 
important, but surely we must consider also the security of its 
neighbours and the fate of the Palestinians. State terrorism as 
practised by Israel, is as despicable as any kind of terrorism and it 
must be stopped. There cannot be peace and security without 
justice. 

The situation in Afghanistan is far from being resolved. 
Afghans in their thousands continue to live in refugee camps. The 
Paris Conference on Cambodia failed to achieve a comprehensive 
political setriement. We must continue our efforts to resolve the 
Cambodian problem before it degenerates into another bloody civil 



war. 




Of particular interest to us here is the situation in Southern 
Africa, where our efforts need to be stepped up. We are agreed that 
Apartheid must be eliminated. The correct signal must be sent to 
the racist regime in South Africa. Sanctions work. Do not be 
deluded into believing that the small changes we are seeing there is 
due to a sudden flowering of humanitarian feelings. Concern for the 
effect sanctions on the blacks is misplaced. Consequendy, sanctions 
must not only continue but must be escalated. Investments and 
financial flows to racist South Africa must be completely stopped. 

We all know that the independence plan for Namibia is partly 
at least the result of sanctions. We also know that control over 
Namibia will be grudgingly surrendered, and every opportunity 
exploited to frustrate the implementation of the plan. 





21- The Commonwealth Heads of 

Government Meeting^*^ 





Malaysia, situated at the crossroads between China and India, 
East and West, has for centuries been a meeting place for peoples 
and cultures. We carry this tradition today as we now play host to 
the leaders of the Commonwealth. 

Although we have been trading with the rest of the world for 
over a thousand years, we had never participated much in 
international affairs. But since independence, we have been forced 
out of our cocoon by international economic and political pressures. 
If we do not go out to protect our interests no one will protect us. 
Hence our increasing participation in multilateral organisations. 
The hosting of this Meeting is a part of that need to interact and to 
protect ourselves. 

The Kuala Lumpur Commonwealth Conference is timely and 
relevant. Developments in relations between the superpowers 
promise, for the first time since the war, a broadbased and 
unprecedented agenda for political and economic cooperation. Less 
heartening, is that we enter the next decade with the economic 
issues of the eighties unresolved. And, equally disheartening. 
Apartheid is still with us. 

These trends and circumstances provide challenges and 
opportunities which demand new responses from us. The 
Commonwealth, if it is to remain relevant, must provide some of 
the answers. The Kuala Lumpur Conference, I hope, will give us 
the opportunity to look for them. 

(♦) A speech on the Occasion of the Commonwealth Heads of Government Meeting, 
Kuala Lumpur, 18.10.1989. 




peace in order to build quite literally a new world. It will be a more 
truly inter-dependent world where decision-making on the 
management of the world's economy will not be confined to a few 

major powers. 

Decisions must involve greater participation — 
democratisation of nations rather than just people. I see a need for 
strengthening the UN system in its role in economic and social 
developments, in securing peace and the mitigation of such global 
problems as drugs, terrorism, environmental degradation and 
refugees. God willing, we will have a more comprehending world 
able to act positively to meet the problems posed by the latest age 
of transition. 






Regionalism, Globalism and Spheres of Influence 1 87 

Till the end of the century, the whole world must rearrange 
itself. The nations of the world did a good job when the first 
transition took place with the shedding of the global empires of the 

West. Now the nations of the world must do an even hetter ioh in 




War 



a better and less oppressive world. 




Many of our ideas on politics, economics and social affairs are 
out of date. They are out of date not because they were 
ill-conceived in the first place. They are out of date because they 
have been correct and effective and they have changed human 
society so much. When Marx wrote Das Kapital, rich individuals 
personally owned and controlled what he called the means of 
production, the capital, land and labour. It was an inequitable world 
and an unjust society. But even as Marx suggested ownership of the 
means of production by the state in the interest of the people, the 
capitalists were rushing to correct the extreme exploitation that 
they practised. They succeeded too well. Indeed they lost control of 
the process. More and more the profits of a capitalist system 
became distributed among the people. It took the Russian 
Communists seventy years to acknowledge that their laudable 
objectives have been achieved by their rivals — the capitalists. The 
acknowledgement was painful. But with the acknowledgement, a 
whole new era must begin. 

We are living in the beginning of the era. We are still 
sceptical. Will the leopard change its spots ? Will diehard 
Communists sworn to spread the creed throughout the world really 
give up their ideological mission ? We are not completely sure. But 
the process that has been started cannot be easily stopped or 
reversed. Like the capitalists who liberalised their ownership and 
control in order to counter the spread of Communism, the 
Communists are likely to lose control of the liberalizing process 
which their leaders have started. 

We do not know for certain where this will end up. But for the 



next few years before the century ends, we are likely to have more 






186 Regionalism, Globalism and Spheres of Influence 



The South Commision has been set up to look at the potential 
and possibilities of greater economic intercourse between the 
countries of the South, There is no way they can stop trading with 
the North, but a fair proportion of the trade in goods and services 
can be redirected to the South for mutual benefit. There swill be 
tremendous obstacles. Dumping, aid and grants by the rich North 
are but a few of the obstacles to trade between the South. But if 
there is a will, a resolve to correct an unfair and inequitable wealth 
distribution, many things can be done. At the very least the threat to 
buy South will push the North to sell their goods and services at 
more reasonable prices. 

I am not suggesting a trade war between the South and the 
North as a solution to the new threats consequent upon the swing to 
the right in the Five Kingdoms. Such a war cannot be won by the 
South. But the fact is that the fortress mentality in Europe and 
America and the desire by the Soviets and China to go for 
economic growth as well as Japan's already overwhelming 
economic power requires some adjustments by the regional 
groupings of the South. 

ASEAN has so far shown the greatest promise. The region has 
adjusted itself to numerous pressures from outside and some 
debilitating internal problems. But the countries of ASEAN will 
need to do more, if they are not going to be deprived of their 
growth potential in competition with the developmentalist strategies 
of the new North. There is no doubt that a more united ASEAN 
with a single common strategy, will be more safe than separate 
strategies devised and implemented by each member state. Also 
ASEAN together with other regional groups of the South would be 
in an even better position. 

Confrontation is not necessary. Every effort must be made to 
co-exist and to benefit from the new turn of events in the North. 
There are many things that can be done. But the most 
important of all is for the member countries to get closer together 
and for the regional groupings of the South to do the same. 






Regionalism, Globalism and Spheres of Influence 185 



and 



betterment 




The GATT experience and the Uruguay Rounds may be a 
foretaste of what is in store. Just as in politics, the rich and the 
powerful can totally ignore world opinion even when alone, it is 
equally certain that they can and will ignore the world if need be, 
should anything be proposed that is not in their interest. 

Already the Group of Seven has taken it upon themselves to 
shape the world's economy. A unified European economy together 
with an economic union of the USA and Canada working through 
the Group of Seven, would be even more powerful. Perhaps an 
economically powerful Russia and China can provide an alternative 
for ASEAN, but that will be a long time in coming. There is no 
certainty that they will not exert their own kind of pressure in 
order to achieve the economic gains they are seeking. 

Closer regional economic cooperation within ASEAN is now 
imperative. ASEAN member countries must learn to complement 
rather than to compete. In agriculture the climate and other natural 
attributes have forced us to be competitors. But manufacturing can 
be planned for complementation and yet remain mutually 
profitable. No country in the world can manufacture everything that 
it needs. By choice it has to buy from other nations or face 
retaliatory measures. ASEAN countries must accept that even if 
each can manufacture all its domestic needs, it is economically 
cheaper and more profitable to cater to the whole ASEAN market. 
With a big domestic market it will be in a better position to export 
competitively its products. 

But ASEAN is not the only regional grouping in the developing 
world. In South Asia, Africa, and Latin America there are also 
regional organisations which for the moment are still political in 
character, A link-up of these groupings in the economic field would 
make the South more capable of playing a role in the world's 
economy and even in the inevitable economic wrangles between the 
emergent kingdoms of the North. 







184 Regionalism, Globalism and Spheres of Influence 



countries are doubled, that is too bad. The fluctuation in the 
currencies of the world, manipulated not just by powerful 
governments, but by the equally powerful commercial banks of the 
West, must have driven a number of Finance Ministers and Central 
Bankers in the poor countries out of their minds. 

In the centuries of exploitation of the natural resources of the 
rich countries, vast forests were denuded to make way for farms 
and cities. Now suddenly the value of these forests in the protection 
of the environment is realized. Do the rich countries reafforest their 
land in order to restore the ozone layer ? Of course not. The poor 
countries are told not to log their forests, even if that is their sole 
revenue earner. If in the process the softwood producers in the rich 
countries have the market to themselves, this is just coincidental. 

But the poor can take heart. The Five Kingdoms may have to 
compete with each other so fiercely, that there may be room or 
opportunities for the poor to reap some benefit in between. 
However much depends on the South's reading of the situation and 
their willingness to act. They say when elephants fight, it is the 
mousedeer that gets trampled on. But an alert and nimble 
mousedeer should not only escape but should gain something as 
well. 

Poor as they may be the countries of the South together still 

constitute a huge market. But the key word is together. Alone, their 

individual market is too small to influnece the attitude of the rich. It 

is therefore important that the countries of the South at least present 
a united front, if not unite. 

The states of South East Asia have already opted for regional 
grouping. It must be admitted that ASEAN was not intended to 
counter the pressures exerted by others. It was really a political 
grouping to facilitate problem solving between neighbours. But 
nevertheless the grouping should prove convenient for countering 
the pressures from the North. So far ASEAN has proved effective 
in the political field. It has not been so successful in economic 
cooperation. Yet now it has to face new economic challenges 






Regionalism, Globalisni and Spheres of Influence 183 

If the Russians and the Chinese are willing to reduce their arms 
unilaterally, it is because they know that supporting a modem 
military machine is debilitating for the economy of even the richest 
nation. If they need any convincing they have only to look at the 
Allied-enforced Japanese policy of minimal expenditure on arms. 
Clearly any country wishing to prosper must spend less on defence, 
and to do so, they must have less tension in the world, 

That developmentalism itself has reduced tension and stopped 
wars is obvious. But it must be remembered that peace is sought not 
for itself, but for the sake of economic development and national 
prosperity. In the past the prosperity of the big powers had always 
been largely at the expense of the poor. Nations were conquered so 
that their wealth could be plundered. It was an easy and an 
acceptable approach when wars were glorious and empires 
respected and admired. But will the desire for economic 
development in the post imperial period lead to yet another rape of 
the poor ? The answer could be Yes. The poor may have to pay so 
the rich can prosper. The truce among the Five Kingdoms is 

consequently fraught with danger for the unsuspecting poor 
countries of the world. 

The array of weapons at the disposal of the Five Kingdoms are 
as numerous and as varied as their military weaponry, and they are 
just as effective. Aid, loans, markets, GSTFs, currencies, labour 
unions, media, transnational pressure groups, non-tariff barriers, 
tariffs, technology, investment funds and knowhow, global 
corporations and a host of other institutions can be manipulated to 
ensure that the development of the Five is achieved, if need be, at 
the expense of the poor. 

We see how the poor are made poorer through borrowings. 
Some have profited from the loans but most have been forced into 
the equivalent of debt slavery of old. By pushing up the value of the 
currencies of the NICs, immense economic gains can be achieved 
by the rich. If that fails, there is always protectionism to fall back 
on. If as a side-effect of revaluation, the debts of some poor 







182 Regionalism, Globalism and Spheres of Influence 

manipulate in their favour. This is what we are really concerned 
with. 

Pragmatism's assault on archaic ideologies has resulted in what 
might be called the "Modernisations in the Five Kingdoms". It 
started off with China's Four Modernisations. Then came glasnost 
and perestroika in the Soviet Union. Because of the force of other 
factors we are now seeing the second opening of Japan, a process 
that in terms of domestic change may rival the Meiji Restoration. 

Now the European Community is about to create a single 
market with free movement of people, goods and money 
throughout Europe by 1992* The process of the modernisation of 
the Five Kingdoms will be complete when the United States 
launches its own programme of internal reform and reconstruction. 
The Americans who have been so engrossed with their own success 
and are not quite capable of imagining what others too can be 
successful have finally awaken to the facts of life. An inability to 
compete and massive and intractable deficits have contributed 
towards this realization. Still for the moment more ideological and 
economic reforms are needed in the US than anywhere else. 

What is the Modernization of the Five Kingdoms all about ? It 
is about economic prosperity and Developmentalism as they affect 
the people rather than the state. A powerful state is no 
compensation for citizens living in backwardness and poverty. 
Today a state is only meaningful if it is able to provide its people 
with real prosperity and rights. The power of the leaders and the 
strength of the state no longer bring glory and respect for a nation. 

The 1 80 degree turn that China took under Deng's 
modernization and the glasnost and perestroika of Gorbachev are as 
motivated by developmentalism and economic needs as are the 
unification of Europe and that of the US and Canada. Of course 
Japan's single minded drive for prosperity since its defeat in World 
War Two need no analysis. All this switch in policies, is intended 
to give their respective peoples a better life. 






Regionalism. Globalism and Spheres of Influence 1 8 1 

plunder. Powerful nations have invaded and conquered only to 
negotiate ignominous retreats with nothing to show except a long 
list of casualties. Conquest is a messy business in an age where 
people matter and where the masses will not simply lie down and 
submit. 

I am not saying that we have or we will ever reach that 
condition where swords will be turned into plough shares and men 
will war no more. Man is a contrary creature. There is a madness in 
him which leads him into doing extraordinary things. Despite the 
obvious futility of war in this day and age, there is no certainty that 
a mad man on a mad impulse would not precipitate a war. And so 
we have to keep our powder dry and, like the Scouts, we have to be 
prepared. 

Empires and conquests may no longer be the acceptable things 
they once were but a willingness to fight and defend oneself and 
render aggression costly and unprofitable are essential to sustain 
modern mores or the proper behaviour of nations, big and small. 
The problem is what level of preparedness. Only acknowledged 
enemies can determine this, that is if they can talk with each other. 
Some of them are at last talking to each other. 

I have little doubt that the increasing realisation of the 
decreasing utility, power and the application of conventional 
military force, the turning inwards towards domestic reform, the 
reduction in the push of ideology and perhaps the thirst and the 
need for a period of peace and tranquility in important quarters 
have all conspired to produce an outbreak of peace in 1988. One 
might be excused for thinking that for the first time in a long time 
the world is being confronted by a peace epidemic of sorts. 

War, it has been said, has its own momentum. Peace too may 
possess that quality. I would expect that in the nineties, although 
new brush wars may break out, the peace momentum will continue. 
It might also be noted that just as war has its awesome 
consequences, peace too will have its enormous threats and 
problems, as powerful nations seek to use other weapons to 







180 Regionalism, Globalism and Spheres of Influence 

a quasi-war economy with the result that Soviet missiles can deliver 
at this instant a million-ton TNT equivalent load to any place on 
earth with impeccable precision whilst Soviet agriculture cannot 
produce quite enough for Ivan's dining table. The United States too 
has paid a high price, as evidenced by massive deficits and erosion 
of its leadership position. 

In the context of new global and domestic realities, passions 
and priorities, the decline of the Seventy Years War can be 
expected to have major effects on the lives of practically everyone 
everywhere. Already we see tremendous effect on Iran and Iraq, 
Afghanistan, Cuba, Angola, Namibia, Palestine, Israel, Kampuchea, 
Vietnam and a host of other arenas and theaters. 

Even the humblest student of international relations will notice 
that both the military superpowers were in political decline even as 
they achieved the peak of their military might. Because of the 
momentum of military production and the mad scientists who are 
forever devising newer and better ways of killing and destroying, 
the build-up of military weaponry will continue; but this will not 
slow down the rise in the power of moral and immoral suasion, as 
evidenced by the western-originated transnational pressue groups, 
the power of economic arm-twisting in their various forms and the 
uninhibited role of the media, to name a few. 

Conventional war as an instrument of policy has become 
increasingly illegitimate, increasingly costly and increasingly 
ineffective in producing the required results. War is no longer a 
glorious activity to which even nobility would contribute the flower 
of its youth. Today, in the eyes of the individual, in the eyes of the 
world community, and often in the eyes of the very perpetrator, war 
has, frankly, a bad odour. 

There was a time when wars could be won at what may be 
termed as a reasonable cost. It no longer is. Even the richest oil 
nations can be bankrupted by a few days of hurling ballistic 
missiles at each other. In the end there is so little to show — no 
new empires, no subject people and no new sources of wealth to 






Regionalism. Globalism and Spheres of Influence 179 



I think it was Rousseau who said that there is nothing more 



powerful than an idea whose time has come. Some may paraphrase 
it by putting it the other way round, that there are few things more 
powerless as an idea whose time is over. The time of rigid central 
planning and regulation of economies is over. To be sure, there 
could be some negative elements in this trend. It can be carried too 
far. The switch from trading in real goods to trading in paper, 
including non-existent money, is one of them. Trading in 
corporations and not trading through corporations is another. But 
the ascendancy of pragmatism over dogmatism, the decline in "the 
age of ideology" in the traditional historical sense, the reduction in 
the play of passion and the complication of dogma in international 
relations, all augur well for the world community as they will for 
ASEAN. 

Pragmatism's rise to power in the People's Republic of China 
initiated the transformation of many key elements of the Seventy 




Years "War 



4( 



West", a war 



which began with the Russian Revolution in 1917 and shaped much 
of the history of the world in the twentieth century. Pragmatism's 
rise to power in the Soviet Union and likely changes in the national 
priorities of the United States and elsewhere threaten to eventually 
put an end to this "war" in the remaining years of the twentieth 
century. 

As is the case with all protracted conflicts in world history an 
ending comes with a redefinition of national priorities. This is often 
tied to a sense of psychological and material exhaustion (on the part 
of at least one side to the conflict) and a realisation (on the part of 
more than one side) that there are other more important battles to be 
fought, different dragons to be slain, new powers and constellations 
to relate to. 

It is a fact that after the Second World War neither the United 
States nor the Soviet Union settled down to a peace economy as did 
the defeated powers : Japan and West Germany. Because of the 
narrower economic base of the USSR, it has been forced to sustain 









178 Regionalism, Globalism and Spheres of Influence 



A proper sense of time is important for we should not waste our 
time on fascinating possibilities — the emergence of Japan as 
number one, the surge of China to number two, the possibility of a 
"Super Europe" stretching from the North Atlantic to the North 
Pacific, of a fortress America from the Arctic to the Antarctic, of 
the actual dismantling of the nation state or even the very 
destruction of a viable habitat for the survival of the human race 
itself- All these can come to pass. But not within the space from 
now to the twenty-first century. 

What actual great challenges of change, then, can we expect the 
world to throw up in the next 132 months ? Because history will not 
bow to Mahatma Gandhi's plea that there be more to life than 
increasing its speed, the changes that we need to deal with will 
come thick and fast. Fortunately, a large proportion of them have 
and will continue to be positive structural trends whose course and 
contents are already clearly evident and clearly constructive of a 
more prosperous, peaceful and stable world. 

Amongst the most hopeful of these changes must be the big 
swing to the Right : in the countries of the Left the modernisations 
and perestroika, and in the countries of the Right privatisations and 
deregulations. By comparison to what is happening now in the 
market economies, Malcolm Forbes with his capitalist tool is a 
leftist. 

These developments — internally generated, self determined, 
an expression of the wishes and the will of their own people 
have undermined totally any faith in the permanency of ideologies 
and systems. Nothing is sacred any more. Economic atheists have 
now taken over everywhere. Of course it is possible to envisage 
circumstances in which the trend will be reversed. But this is most 
unlikely in the foreseeable future. Certainly from the frozen wastes 
of Siberia through Eastern Europe, Central America and much of 
Asia there has been an erosion of faith amongst the faithful. 
Dogmatic Marxism and the traditional command economic system 
as a method is on the retreat in the minds of men and in their 
actions. 






Regionalism, Globalism and Spheres of Influence 177 



ideals. Far from it. But it does mean the need for quick and 
continuous re-assessments of our objectives and ideals in response 
to quick and continuous changes in our external environment. 
Knowledge, because it is power, is an essential ingredient for our 
survival. 

The challenge of action confronts us at all levels : the national 
level, the regional level, the inter-regional level and the global 
level. Comprehension without action is about as fruitful as action 
without comprehension. 

My remarks this evening focuses largely on the external 
environment of states. But I feel I cannot let the occasion pass 
without stressing the central importance of action at home; the 
criticality of continuous reform and reconstruction within our 
respective national borders. The primary determinant of our 
fortunes in the challenging days ahead, as in the past, will be our 
own national resilience. The most important helping hands we can 
rely on will always be the ones that are at the end of our own arms. 

As for action beyond our shores, there is every need to be 
realistic. The nations of the ASEAN Community — influential 
though they may be, must realise the limitation of their influence. 
There is only so much they can expect from their trading partners 
but beyond that they will have to rely on themselves. In the new 
developmentalist world which is emerging, ethics and friendships 



are not to be relied upon too much. 



At the same time it would be foolish for us to be negative in 
thought and action in the international arena. It would be a great 
tragedy if we are oblivious to our potentialities — oblivious to what 
we can get from and what we can give to the world if we can 
summon the will and the statesmanship, the guts and the grit. 




We in ASEAN and indeed 



distant 



than eleven years away. 





176 Regionalism, Globalism and Spheres of Influence 




politicians can modify their predictions as they go along* In the end 
of course they are never too far wrong- Still the wise politician 
always hedges his bets. And so I would like to remind you that the 
one thing we must expect about the future, is to expect much that 
we don't expect. 

I would like tonight to reflect a little on two quite 
unextraordinary thoughts about the future. The first is that the 
world has entered with some fanfare into a historical era of 
transition and its attendant uncertainty. This is the second transition 
the first was when all empires had to be dismantled after the 
war. Mankind has reached a historical turning point, rich with 
political possibilities, but replete also with serious economic 
threats. 

The second is that in a shrinking world no one will be allowed 
to escape the consequences of the changes the world is going 
through. There will be winners and there will be losers. There will 
be those who will be caught in between and who will be squeezed. 
Some will not know what hit them. Whichever it may be, life for 
everyone will not be quite the same again. It is therefore necessary 
for us to fully grasp the critical elements of continuity and 
transition and to respond quickly, flexibly, with creativity and 
strength, to the opportunities that will present themselves as well as 
the challenges that will be hurled at us. 

To do this we have firstly the task of comprehension. The 
second is the challenge of action : attempting to do the right thing at 
the right time and in the right way, which is extremely difficult in 
thebest of times. 

The task of comprehension in an age of uncertainty demands 
that we wear no blinkers and have no illusions. It is especially 
important to ensure that we are informationally rich and 
analytically well endowed. It is incumbent upon us to be prepared 
to confront new realities and their logic, however discomforting 
they may be to preconceived notions. This does not mean the 
abandonment of our personal and national, regional and global 




20" Regionalism, Globalism and Spheres of 

Influence ; Asean and the Challenge of 

Change Into the 21st Century (*^ 






I would like to thank the Institute of Southeast Asian Studies 
for inviting me to deliver this Singapore Lecture, the ninth in your 
series. It is indeed a great honour for someone who is not an 
economist and who is not a retired statesman to be invited to speak 
at one of the most celebrated events of the Institute. 

The subject of this Singapore Lecture is related to the future. 
My fear is that economists and politicians, retired or otherwise, are 
about as good at foretelling the future as those who rely on the stars 
and the tea leaves. Practising economists have the aid of the most 
sophisticated models and the most sophisticated and complex 
theories. The members of this profession have the advantage of 
being able to rely on the staple of their trade : the two hands. On the 
one hand, this. On the other hand, that. Unfortunately in predicting 
the future, even two hands are often not enough. 

I should of course not be too tough on the economists since the 
members of my own profession — and here I am not referring to 
the medical profession — do not have an enviable record either. 

Like the economists, politicians too have some advantages 

i 

when it comes to discerning the future. They are in a better position 
to plan the future and execute it. If they fail, the profusion of words 
that constantly issue from their mouths are likely to confuse and 
cause a lapse of memory among those who heard them. In any case, 



(*) The Singapore Lecture - 14.12.1988. 





174 The Eighth Asean-EC Ministerial Meeting 



ASEAN 



detemiined 



leave them no place to thrive or to enjoy their ill-gotten gains. 

Recent initiatives on the Cambodian issue have given us fresh 
hope for progress in finding a peaceful political settlement. The 
central point in these initiatives is an enhanced United Nations role 
in Cambodia. The decision of the five permanent members of the 
UN Security Council to be collectively and directly seized of the 
matter is certainly significant. The Australian proposal can also 
fomi the basis in our search for a political settlement. I welcome the 
convening of the Informal Meeting on Cambodia in Jakarta at the 
end of this month. Malaysia will contribute positively to this peace 
process. While our attention is focussed on the developments 
concerning Cambodia we must not marginalise the problem of the 
Vietnamese boat people. For 14 years Malaysia and other South 
East Asian countries have for humanitarian considerations accorded 
temporary refuge to the Vietnamese boat people. Increasingly, this 

asylum facility is being abused by Vietnamese seeking a better life 
in Western countries. Their continuing influx has exerted 
unacceptable pressures on our social and political fabric. Malaysia 
believes that a durable solution to this problem is obtainable in the 
Comprehensive Plan of Action (CPA) provided all its aspects are 
implemented in totality and simultaneously. We cannot accept 
being singled out to shoulder the burden. In the first instance we 
were not, even indirectly, the cause of the problem. It is therefore 
incumbent on the international community, and particularly those 
adopting high moral positions, to ensure the full and immediate 
implementation of the CPA, 







The Eighth Asean-EC Ministerial Meeting 173 



form 



by both ASEAN and the EC. 



And now let me touch briefly on the so-called issue of the 
Penan about which two resolutions have already been adopted by 
the European Parliament, You could not have met at a more 
appropriate place to know more about this matter. For now, let me 
emphasise one point clearly : we do not intend to turn the Penan 
into "human zoological specimens" to be gawked at by tourists and 
studied by anthropologists while the rest of the world passes them 
by. The Penan in question number about 900 out of a total Penan 
population of about 9,000 in Sarawak. Whilst the majority of them 
have successfully settled, the remainder are still leading nomadic 
lives in the jungle. It is our policy to eventually bring all jungle 
dwellers into the mainstream of the nation's life. There is nothing 
romantic about these helpless, half-starved and disease-ridden 
people and we will make no apologies for endeavouring to uplift 
their living conditions. I hope during your stay in Sarawak you will 
be able to appreciate the situation better. 

You also have the question of drugs on your agenda and rightly 

so, ASEAN-EC cooperation is an essential part of the international 
effort to combat drug abuse and illicit trafficking. Malaysia, on its 
part, has adopted a mixture of harsh measures against traffickers 
and mandatory rehabilitation for drug users to meet this challenge 
head on. As a result the spread of drug abuse here is much less than 
in the more tolerant countries, where the spread of drug abuse is 
much more and with greater speed. There must be no let up in our 
war on drug abuse. 

It is heartening to note that many countries have pledged their 
political support for more intensified cooperation on all fronts. The 
1987 International Conference on Drug Abuse and Illicit 
Trafficking in Vienna laid that foundation. Hopefully, the UN 
General Assembly's Special Session On Drugs which is to be held 
in a few days time will carry the fight forward for a concerted 
programme of action involving both the producer and consumer 







172 The Eighth Asean-EC Ministerial Meeting 



contribution to the economy, as we concentrate on value-added 
products, particularly furniture-making. Industrialised countries 
could assist us in these efforts by lowering their protective walls 
currently in place against such manufactured products. At the 
moment, the tariff barriers in some countries favour sawn timber 
and logs against finished higher value products. The irony is that 
this not only retards our industrialisation process, but it also 
encourages more trees to be felled. If the environmentalists are 
truly concerned they should encourage relocation of timber-based 
industries into the timber producing countries. That way 
employment and foreign exchange earnings will be sustained with 
less timber feeling. A boycott of tropical timber may result in the 
clearing of more forest land for agriculture and development. 

The ASEAN countries collectively have over 170 million 
hectares of tropical forests. This represents more than half of the 
total land area of ASEAN. In Malaysia, our tropical rainforests 
cover about 20 millio hectares, out of a total land area of 33 million 
hectares, or about 61%. If you take into account tree crops such as 
rubber, oil palm and cocoa, the area under forest and tree crops 
comes up to nearly 74% of the total area. Considering that nearly a 
hundred years have passed since we first started clearing our 
jungles to make way for plantation agriculture, you will appreciate 
that far from indiscriminately clearing our forests as alleged, much 
care and planning have gone into managing our forests. Long 




West 



Malaysi 



engaged in managing our forest resources and in preserving our 
wildlife and biological diversity. 

What we would now like to see, is the discussion being carried 
to a more constructive level so that the focus is on joint efforts by 
both the developed and the developing countries to protect the 
environment, while pursuing the twin objectives of economic 



and 



Heads 






The Eighth Asean-EC Ministerial Meeting 1 7 1 

In the area of trade the situation is equally less reassuring. It 
would be disastrous for us if a combination of the 1992 Single 
Market and special trading privileges for Eastern Europe lead to 
diminished market access for ASEAN exports. Western Europe has 
therefore a unique and historic opportunity, not just to mould the 
future of Eastern Europe but also the future of the world as well. 
You can create opportunities for ASEAN countries, and others, to 
join with you in the reconstruction and development of Eastern 
Europe and indeed of other regions as well. You can also help to 
bring together businessmen and business opportunities in a 
three-way link-up between Western Europe, Eastern Europe and 
ASEAN. You can also help by ensuring that your single market, 
will lead to greater international cooperation and to an upsurge of 
international trade that will benefit all nations. Peace and progress 
in Europe cannot be pursued separately from peace and progress 
elsewhere in the world. 

Let me now take up some issues nearer home. We in Malaysia 
view with great concern the campaign currently being waged 
against us on the issue of tropical rain-forests. We have seen how 
these campaigns have resulted in the boycott of tropical timber in 
some EC countries. 

We recognise that there are many organisations, groups and 
individuals who are genuinely concerned about the environment. 
However, there are those who are bent on carrying out their 
campaigns based on sentiments and irrationality. And when they 
have the ears of political parties either in power or in the 
opposition, biased policies emerge. Action is often taken against us 
not because it is deemed right but because it is popular. While this 
may be a vote-catching issue for some, for us in the developing 
countries, it is a matter of economic survival. 

The timber industry plays an important role in the Malaysian 
economy. In 1988 it constituted 5.1% of Malaysia's total export 



,000 



make 





170 The Eighth Ascan-EC Ministerial Meeting 




In rapid succession the communist regimes of Eastern Europe 
have collapsed under the pressure of mass demonstrations and mass 
dissatisfaction. The people of Eastern Europe are now 
enthusiastically pursuing their goals of a more democratic and 
prosperous society. As a democratic and free-enterprise nation 
Malaysia welcomes the recent changes in Eastern Europe. We 
welcome the changes because it will also enhance both European 
and global security and stability. In addition, it will provide new 
opportunities for trade and economic cooperation for all. Eastern 
Europe however still faces many challenges ahead. Eastern Europe 
is going to need a lot of help and support. Malaysia and ASEAN 
will not grudge Eastern Europe this support. Indeed, we too would 
like to assist Eastern Europe in whatever way we can. 

Developments in the Soviet Union and in Eastern Europe have 
already had a positive effect on the Asia-Pacific region. Both Soviet 
and US forces are being reduced. This improvement in the overall 
politico-strategic situation will in turn offer ASEAN new regional 
opportunities to pursue our long-cherished goal of a Zone of Peace, 
Freedom and Neutrality or ZOPFAN, and allow for an even greater 
focus on economic development. But like you, we also have our 
fears and concerns. Fears have been expressed that large scale 
Western assistance to Eastern Europe will be at the expense of 
other developing countries. In raising this issue here, I want to 
emphasize that I am not making a plea for assistance to ASEAN per 
se. I plead rather for the many Third World countries who are 
facing serious economic and social difficulties. I think we all accept 
the fact that economic development is a vital factor in promoting 
peace and stability. 

The question in our mind is whether Eastern Europe will now 
draw away the already sparse inflow of European investments into 
Southeast Asia. Despite assurances that more would be done to 
encourage greater investments in ASEAN, European investments 
continue to lag behind those from other regions. 





The 




new set of policies and regulations on banking, trading and public 
procurement. While efforts are being made by the EC to provide 
more transparency to what is taking place, it will be some time 
before our business and trading community will fully comprehend 
and familiarise itself with the new business environment. 

Furthermore all decisions on the regulatory aspects of trade are 
being taken without any discussion with the EC*s trading partners. 
Hence it is natural that there be apprehension as to whether we 
would still be facing national quotas, and under what conditions 
and whether our products will continue to have market access to the 
EC, We hear that GSTP provisions will be done away with in 
favour of common tariffs for all imports. There is obviously an 
^information gap' here which both ASEAN and the EC have tried 
to fill by organising colloquiums, seminars and meetings. However, 
project 1992 is an immense and complex enterprise. More contacts 
between the two sides are necessary particularly in assisting our 
exporters who would be most affected by the changes. 

There also appears to be a 'consistency gap' between the EC's 
position as a leading proponent of trade liberalisation and 
multilateralism, on the one hand, and what it does to further the 
cause of these principles on the other. It is necessary for the EC to 
demonstrate that the principles of free trade and competition do not 
stop short at its borders but will be applicable to all in a fair, just 
and equitable manner. Nowhere is the application of these 
principles more relevant than in the current Uruguay Round of the 
Multilateral Trade Negotiations which seem to be stalled in the 
various groups on tariffs, tropical products and agriculture. Many of 
the issues which are being dealt with in these groups, are of vital 
importance to ASEAN and other developing countries. We would 
like the EC to show the political will necessary to get the 
negotiations moving towards a successful outcome. I hope this 
meeting here in Kuching will help reassure us that far from being 
'Fortress Europe' the EC will not only maintain but strengthen its 
relations with ASEAN and will play an active role in support of the 
open multilateral trading system. 







168 The Eighth Asean-EC Ministerial Meeting 

Undoubtedly the EC will enter the 99s with an enhanced 
economic and political role. It is going to emerge from Project 1992 
as the most powerful economic and political grouping. A 
reinvigorated and resurgent Europe has implications for ASEAN 
and the rest of the world. Will the establishment of an internal 
market and other integrative measures mean a more inward looking 
EC, content on trading within itself and the European Economic 
Space which would include the AFTA countries ? In 1987, for 
example, 60% of total EC exports went to the EC countries and if 
AFTA is included, EC exports to European destinations were as 
high as 70%. The potential is there for an inward looking and less 
open trading group. If we add Eastern Europe as well, the EC might 
well do without the rest of the world. 

While the EC may consider the ASEAN area as an important 
investment centre and the establishment of the EC joint investment 
committees in each ASEAN capital attests to that, the attitude of 

the investors is somewhat different. Despite the very attractive 
packages and incentive offered by ASEAN countries, European 
investors still have a preference for the industrialised nations in the 
EC, and North America. After 1992 they might even be more 
disinclined to venture outwards to ASEAN and seek instead the 
advantages of a homogeneous and enlarged market. This is an 
aspect which I hope you will take up at this meeting, bearing in 
mind the high priority accorded to closer industrial cooperation at 
the Seventh ASEAN-EC Ministerial Meeting in Dusseldorf in May 
1989. 

ASEAN's concern about developments in the internal market 
are real, because not only is the EC a significant source for 
development funding, it is also the third largest trading partner of 
ASEAN after Japan and the US. In 1987 the EC accounted for 13% 
of ASEAN*s global exports and 14% of ASEAN's global imports. 
How would this trade be affected come 1992 ? There may be a free 
flow of goods, people, services and capital within the community 
and a conducive atmosphere for healthy growth and competition. 
But for those outside the EC, they will have to adjust to a whole 







19- The Eighth Asean-EC Ministerial 



Meeting^ 



) 





We meet here at a momentous time in the history of the world. 
In the Asia-Pacific region we are witnessing the dawn of the Pacific 
Age with high growth rates, expanding economies and greater 
regional economic cooperation. Japan has become an economic 
superpower in its own right, and is set to chart a global political 
course of its own. The United States, long the main engine of world 
growth, is facing serious economic challenges. Its free trade 
agreement with Canada however has created a major new trading 
bloc with all the implications that trading blocs have. 

In Europe, the European Community is gearing up to realise 
Project 1992, the single European market. Close cooperation 
between the EC and AFTA is also in the offing. 

In the Soviet Union, *perestroika' and 'glasnost' continue to 
initiate changes that would have been unimaginable only months 
ago. Even more unthinkable, are the radical changes occurring in 
Eastern Europe as a result of the Soviet decision not to prop up the 
Communist Governments. 

Since we meet within the context of an ASEAN-EC forum, I 
would like to confine my remarks principally to the impact of these 
changes on our mutual relationship. The momentous changes that 
are taking place are going to affect ASEAN-EC relations. If we 
value our relations, if we see it as making an important contribution 
to global stability and prosperity, then we must seek to ensure that 
the changes confronting us work to strengthen our relations. 

(*) A speech at the Official Opening of the 8th Asean-EC Ministerial Meeting. Sarawak, 
16.02.1990. 





166 Biodiversity 



policies and efforts to conserve our rich resources, maintain our 
biodiversity while at the same time keeping a reasonable 
momentum of economic development, I assure you that the 
Government of Malaysia will examine all your suggestions for 
possible incorporation into our future plans. 







Biodiversity 165 

to expose the peoples of these countries to unacceptable threats to 
their well- being. It is difficult to convince a man who is about to be 
eaten by a tiger or trampled by an elephant or dying of typhus or 
malaria that he is helping to preserve biodiversity. It is imperative 
that the developed countries do their bit for biodiversity. 

The developed countries are not only rich and advanced in 
technology, but they have vast unpopulated and unused land. The 
deserts of the western United States can in part at least be grown 
with trees using the vast resources of underground water. Some of 
the flora and fauna can be transferred to these new forests. 

Lest there be protest over this idea, let me remind you that quite 
a substantial area of these deserts together with their abundant 
acquifers have been developed as resort cities complete with vast 



* n« 



lakes 



Additionally, it must be remembered that tropical plants and 
flowers have been and are being cultivated in the developed 
countries under artificial climatic conditions because they have 
commercial value. In suggesting that some of the deserts be 
converted to forests, I am not being facetious. Indeed if developed 
countries want to, they can easily reafforest vast areas of the Sahel, 
the sub-Saharan areas where the poorest people in the world are 
dying by the thousands every day from lack of food. Let us not trot 
out the spurious argument that deserts are essential for biodiversity 
and must remain untouched by the hands of man. They have been 
touched. If they can be forested, then a part of them should be 
forested. Reclaiming some of the deserts will not change the 
environment. Indeed a large part of these deserts are of recent 
origin, having been created by misuse by man and animals like the 
elephants. 

We have today a gathering of eminent scientists, experts in 
different specialised fields related to conservation of nature and 
natural resources as well as the environment. It is your duty to 
assess the situation in this country accurately and fairly and to make 
constructive suggestions for the improvement of our present 






164 Biodiversity 



environmental quality, but are also determined to be a leader in this 
endeavour in the region. 

In October last year at the Commonwealth Heads of 
Government Meeting or CHOGM, I had the pleasure and privilege 
of presenting a document on the environment for the consideration 
of that important body. This document was adopted and came to be 
known as the Langkawi Declaration on the Environment. 

This declaration marked a new level of understanding and 
awareness of the importance of the environment in today's world. It 
also was the fruit of our own environmental awareness which had 
been nurtured and developed over the years by many different 
organisations and institutions in this country. Today we are 
celebrating the 50th anniversary of one of the organisations in 
Malaysia that has helped nurture this consideration of nature, its 
conservation and of the environment. 

The Langkawi Declaration recognises that environmental 
problems transcend national boundries. Therefore there is a need 
for all nations to cooperate if these environmental problems are to 
be solved. The declaration promotes afforestation in developing 
countries to arrest the deterioration of land and water resources. It 
also calls on countries to upgrade efforts in sustainable forestry. It 
calls for the support of activities related to the conservation of 
biological diversity and genetic resources including the 
conservation of significant areas of virgin forests and other habitats. 
The unanimity with which this document was supported 
demonstrates the oneness and the will of the Commonwealth 
nations to carry out and implement the terms of the Declaration. 

It is to the Malayan Nature Society and other responsible 
conservation bodies that we in the government look to for feedback 
on how these national and international policies are actually 
working out in practice. There must be a sharing of efforts and 
responsibility for maintaining biodiversity. The numerous species 
that are being preserved are not all harmless. Some are dangerous 
to health. To ask only the developing countries to preserve them, is 






Biodiversity 163 




maintained as amenity forests. 12.74 million hectares make up 
about 38% of the total land area of Malaysia. If tree plantations are 
included, about 74% of Malaysia is covered by trees. 

It may be argued that tree plantations are not forests. But even 
if they do not have the same range of biodiversity as the natural 
forests, they do contribute to the photosynthetic process, the water 
cycle and other natural functions of greenery. The measures taken 
to preserve Malaysian forests carry a considerable cost, not only in 
terms of maintenance but also in depriving the people and the 
nation much land for living, working and cultivating. The price of 
land naturally increases as less land becomes available for 
agriculture and industry. Since what we are doing contribute to the 
better environment of the rest of the world, some thought should be 
given to the sacrifices by Malaysia and other developing countries. 

Still we have dedicated ourselves to preserving the forsts. To 
reduce forest exploitation, we have established forest plantations of 
species that have short harvest periods. 

National parks and wildlife are catered for through various 
Federal Acts and state enactments. A total of 1.485 million hectares 
have been set aside as parks, wildlife reserves and sanctuaries. The 
six percent of Peninsular Malaysia so reserved, most of it in pristine 
condition, represents one of the highest of such percentages in this 
part of the world. This figure compares well with, or even exceeds 
that of some developed countries of the western world, many of 
which are quite vocal on the subject of conservation. 

We in Malaysia have a long and mature history of managing 
conservation areas. Taman Negara, for example, created in 1939 
was the first National park in South-East Asia to meet today's 
international criteria for a national park. This park remains 
essentially the same as when it was first established. The 
Environmental Quality Act sets standards for water and air quality 
and provides for mandatory environmental impact statements. We 
have not only sought to implement a high standard of 





162 Biodiversity 



Maintenance of a critical level of biodiversity is therefore 
compulsory for the sustainability of natural ecosystems. 

Maintenance of global biodiversity is the common 
responsibility of everyone, as its benefits are universal and not 
limited to any one country or region. Developed countries with 
their advanced technological and scientific capability are in a better 
position to reap the benefits from the conservation of biodiversity. 
Thus this effort must be well supported by the wealthy developed 
countries without imposing restrictive burdens on the developing 
ones, even though the habitat of the diverse species are now usually 
in the developing countries. It must be remembered that the 
developed countries were once also the habitat of numerous species 
until indiscriminate development eliminated them. While we would 
not wish to destroy biodiversity, it must be remembered that 
preserving it imposes a massive cost on the already poor. A way 
must be found to preserve without bringing development in poor 
countries to a standstill. 

A number of existing international agreements have been 
formulated for the protection of biological diversity. In the general 
area of conservation of wild fauna and flora, Malaysia has 
demonstrated its commitment to conservation by signing such 
international agreements including the Convention on International 
Trade in Endangered Species of Wild Flora and Fauna, At this 
juncture we are also looking at the Ramsar Convention for the 
protection of Wetlands, the Bonn Convention for the protection of 
migratory species and the World Heritage sites convention. 

I must once again stress that all these conventions are designed 
to benefit not just Malaysia, but also the whole world. The 
Malaysian Government has also promulgated policies towards this 
end, including the passing of laws and enactments. A primary law 
is the Forestry Act of 1984 which provides for the establishment of 
a permanent forest estate comprising productive, protected and 
amenity forests. The permanent forest estate of Malaysia today 
totalled 12.74 million hectares of which about 29% is protected or 





18- Biodiversity^ 



) 






Malaysia is endowed with a great diversity of species in its 
forests and other natural habitats such as rivers, lakes and 
surrounding seas. Over 10,000 species of flowering plants, about 
2,000 species of vertebrates and about 80,000 invertebrate species 
have been documented in this country. Only a small proportion of 
these resources has been utilized for our needs. As a medical man, I 
am aware of the many plants that are used in traditional medicine. I 
have no doubt that scientific investigation will reveal that many of 
these can replace some of the synthetic drugs and can provide new 
medicinal compounds. 

What is of significance, is that there is a high degree of 
endemism of these species in the country. Botanical studies in 
Peninsular Malaysia have shown that up to 30% of all tree species 
and 50% of the orchids are not found anywhere else. Biological 
diversity needs to be conserved to ensure that there remain genetic 
resources in this world for the further propagation and 
domestication of potential crops and animals, as our forefathers had 
done with those which we are familiar with today. Many drugs and 
pharmaceutical products have been obtained from the chemical 
blueprints provided by plants and animals from the tropical 
rainforests. Many life-sustaining ecological processes particularly 
photosynthesis, the water cycle and the nutrient cycle are the result 
of the fine interaction of plants and animal species particularly in 
their natural environment. The question of carbon dioxide level and 
greenhouse effect is of great concern to all nations in the world. 



(*) A speech at the Opening of the International Conference on Biodiversity. Subang - 
12.06.1990. 





Trust and Governance for a New Era 1 59 



We need a paradigm shift, we need a new mind set if we are 
going to put an end to this Third World War. We need victory for 
both, a victory where both sides will benefit. 

The world is big enough and rich enough for everyone. There is 
no need to take everything for ourselves. A win-win solution is 
possible. 

If we can overcome our anger and hatred, our craving for 
revenge, our unlimited greed, we can manage the world and 
achieve trust and eventually good governance. 








1 58 Trust and Governance for a New Era 



human lives, the oppressions of the weak by the strong, the 
disregard for human sufferings; the expropriation of other peoples' 
land and the expulsion of the people, all these have been aggravated 
by the ending of the Cold War and the victory of the righteous over 
the evil. 

The worm finally turned. The weak have now hit back in the 
only way they can. Groping for the enemy, the strong hits out 
blindly in every direction, in every part of the world. No one is free. 
Fear rules the world. 

With the onset of this third World War, the world is in a state 



We 



are 



We 



Village of ours. There is no trust and no good governance. 

So how do we create trust and good governance in the new 
era ? I don't think it can be done by seeking for a military defeat of 
the enemy and forcing them to submit. The forces against the Axis 
of Evil are not going to win because the target is wrong. All that 
can happen if they are defeated, is to create more anger and a call 
for more revenge and retaliation by the people who are incensed by 
the injustice they believed they are experiencing. On the other 
hand, the other side are not going to win either. The enemy is just 
too big and too powerful. 

The only solution is through compromise. Trust must be built. 

The initiation must come from the good people. They must 

recognise that people do not tie bombs to their bodies or crash their 

planes for the fun of it. They must have a reason for it. We have to 

remove the reasons. Outterrorising the terrorists will not work. But 
removing the causes for terrorism will. 

Good governance is simple if we curb the greedy and forget 
about self-regulating markets. Governments are not yet 
anachronistic. They have a role to play. 





Trust and Governance for a New Era 157 





In a free world there must be competition. The strongest and 
the most efficient will win. If you are small and weak and 
inefficient it is best that you go. In athletics it may be reasonable to 
have different classes of competitors. But in the competition 
between countries and corporations there should be no 
categorisation or classification, nor should handicaps be given. The 
biggest and the most efficient should be allowed to dominate and 
take all. It is good for everyone. And so we see the great banks and 
corporations merging and acquiring each other to ensure that the 
tiny banks and businesses in the poor countries will not stand a 
chance, will be swept aside. 

Big is beautiful again. Big is good. Unfortunately there is no 
guarantee that the big will not cheat, will not fall, will not go 
bankrupt. But we must not take notice of Enron, Global Crossing, 
Arthur Anderson, United Airlines etc. They are the exceptions 
which merely prove the rule. 

Today the disparity between the rich countries and the poor 
countries is greater than ever. The richest countries have a per 
capita of more than of US$ 30,000, the poorest US$ 300. Of the 
world's 6 billion people one billion are underfed, underclothed and 
without a roof over their heads. Many scrounge in rubbish heaps for 
food, clothing and materials for their shelter. 

In politics, the post Cold War world is no better. The 
misfortunes of the weak are their problem. The strong will 
dominate. Socially we have not advanced either. We talk a lot about 
the sanctity of human lives and human rights. We are opposed to 
death penalties. But actually whole populations have been 
sentenced to death and in many instances the sentence has been 
carried out. When war is declared against a country a death 
sentence is passed on the people and when war is executed the 
sentence is carried out. And still we talk glibly about the sanctity of 

life. 

The exploitation of the world by the greedy, the double 
standards and the hypocrisy about human rights and respect for 





156 Trust and Governance for a New Era 




from terror attacks. The main result is to disrupt life, undermine 
investments and business, and generally to adversely affect 
economic growth world wide. It is going to be a long war because 
hatred, anger, bitterness rules our hearts. We both want revenge. 
We both will retaliate. You kill our people, we will kill your 
people. And so it will go on and on. Sanity has deserted both sides. 

The world has become small, it is said to be a village. But we 
have not made much progress in the management of our world 
despite its diminished size. Just as in the stone age the man with the 
biggest club rules, in our modern and sophisticated global village 
the country with the biggest killing power rules. 

When the Cold War ended we thought that the world would 
see peace and prosperity. After all the people who believe in peace 
and universal justice won. The evil Empire has been overthrown. 

But the loss of a counter balance has resulted in the great 
exponent of justice and fair play to become unbalanced. While the 
Communists were there the Capitalists curbed their greed and 
avarice. They showed a friendly face. 

But now there is no more other side. The friendly face of 
capitalism is not needed any more. Now capitalists can do what 
they like and what they like is simply to make more money for 
themselves. Why is there a need for borders ? Why should 
countries protect their puny inefficient economies ? The world has 
become too small to be divided into countries with different 
systems of Governments and laws. There should be just one global 
entity and one system, the great democratic system and the freedom 
that is supposed to go with it. If the new democracies do not know 
how to manage the system, that is too bad. Democracy is such a 
good system that everyone must adopt. It is blasphemy to say 
anything against democracy. If you do, if you resist then you will 
be considered a heretic and starved to death, or bombed out of 
existence. 





17- Trust and Governance for a New Era^*^ 





The subject for today is "Trust and Governance for a New 
Era". 

In the world today there is no trust or little trust and 
governance, world governance that is, is not good. We have in fact 
made a mess of the world. Two millenium of experience and 
mountains of knowledge have not made us much more capable at 
managing our affairs than stone age people. We now live in fear, 
every one of us. We fear the terrorists and the terrorists, their 
supporters or alledged supporters fear us. We fear flying, we fear 
traveling to certain countries, we fear night-clubs, we fear letters, 
parcels and cargo containers, we fear white powder, shoes, 
Muslims, pen knives, metal cutlery, etc etc. They, the other side, 
fear sanctions, starvation, shortage of medicine. They fear military 
invasion, being bombed and rocketed, being captured and detained. 

People who are neutral, not involved, innocent - they too live 
in fear. They are the collaterals. Just as the Afghans and the Iraqi 
civilians are collaterals the passengers on the hijacked planes and 
those people working in the World Trade Towers are also 
collaterals. Actually we are in the midst of the Third World War, 
not the war against terrorists but the war between terrorists and the 
peace loving anti-terrorists alliance, the war between the Axis of 
Evil and Satan. Both sides are convinced that they are right, that 
theirs is the fight against evil. Evil and Satan must be destroyed. 

Frightened, the world is taking measures to secure and defend 
at tremendous cost. But the main result is not security or freedom 



(*) A speech at the Plenary Session on Trust and Governance for a New Era. Davos 
Switzerland. 23.01 .2003. 






VII, MISCELLANEOUS TOPICS 






The 4 1 St Session of the General Assembly 1 5 1 



continue contributing to world peace and the progress of all nations, 
big and small, we must live up to our obligations and 
responsibilities to the United Nations. Just as the major powers 
must not expect the United Nations merely to serve them, so too 
must the developing countries be guided by the same principle. It 
must be revitalised and allowed to serve all mankind. The major 
powers have a particular responsibility in preserving the role of the 
United Nations for they will always have the edge in making or 
breaking the UN. Even for them what alternative is there ? Perhaps, 
only a return to unilateralism and an alliance system with its 
attendant dangers. 











150 The 41st Session of the General Assembly 




certain quarters in order that we relent and renege on our 
commitment, Antarctica should be under an internationally 
accepted regime and managed for the benefit of all mankind. We 
remain committed to working towards these objectives with all 
interested parties including the Consultative Parties to the 
Antarctica Treaty- 
There was no consensus last year inspite of our efforts. The 



adamant 



to the sincere wishes of the majority. 
What we sought was merely mc 



information 



regime negotiations, and a follow-up response from the 



Parties 



participation 



Yet, this reasonableness and moderation proved unacceptable. 

We do not seek confrontation. Neither do we desire to threaten 
the security and interests of the Consultative Parties, nor do we 
wish to destroy the framework that the Consultative Parties have 



What 



man 



What 



situation which is deficient and inclined towards exclusivity, and 
therefore not in harmony with international aspirations. 

We are very clear and very conscious of our commitment. We 
should not falter in seeking out the objectives that we set out with 
in 1982. Non-cooperation and non-participation by the Consultative 
Parties will not deter us from pursuing those objectives. It is the 
prerogative of the Consultative Parties to either opt in or opt out, 
but for us the decision is made. We therefore call upon the 
Consultative Parties to work with us towards attaining those 
universal objectives. 

In conclusion, I wish to reaffirm Malaysia's support and 
commitment to the United Nations. If the organisation is to 






The 



In Malaysia we are fully committed to combat the drug menace 
in all its manifestations with every resource that is available to us. 
We have and will continue to hang pushers and traffickers in 
accordance with our laws irrespective of colour or creed. We would 
rather be 'unpopular' in certain quarters than be hypocritical. It is 
only when criminals of this kind know that they will not live to 
enjoy their ill-gotten gains, that they will stop. The death penalty is 
primarily a just punishment for such criminals, for only death will 
stop these purveyors of misery and death. 

For us the battle has barely begun. The international 
community must declare an all out war against drug abuses and 
trafficking in the deadly substances. The International Conference 
on Drugs should not only come out with a definite plan of action 
but also a firm political commitment by all participating nations, at 
the highest political level, to do their utmost. No stone should be 
left unturned and no avenous should be left unexplored in our war 
against this menace. We would like to see such political 
commitment expressed in a 'joint-statement' or 'declaration'. This 
will be above and in addition to the Comprehensive 
Multidisciplinary Outline of Actions. We view such an expression 
of political willingness as essential for a successful implementation 
of the actions that we have mapped. 

Once there is political commitment then the source of drugs 
must be attacked with every available weapon, wherever it may be. 
A full scale war must be waged and that war must be 
internationalised. The fight to destroy production is too big and too 
cosdy for any of the producer countries to wage alone. 

I am pleased with the interest shown by you and the support 
that is given by this Assembly on the issue of Antarctica. This 
positive commitment by the UN strengthens Malaysia's and other 
like-minded countries will to continue to pursue the objective of an 
Antarctica that is for all mankind, and not for an exclusive few. 

The importance of Antarctica to mankind is beyond dispute. It 
is for this reason that we can never yield to pressure mounted by 





148 The 41st Session of the General Assembly 




projects in developing countries besides short term financing. It is 
here that the UN and UN agencies have a major role to play. 

Malaysia has very recently taken the initiative in promoting 
economic co-operation among developing countries by hosting the 
Second International South-South Conference or South-South II, in 
Kuala Lumpur, Many Third World economists, scholars and 
statesmen met and discussed the world economic situation and the 
approach towards improving the economic situation of developing 
countries. We cannot accept that the rich seven should have the 
exclusive right to foist their own solutions to the world's economic 
problems. Already their exchange rate approach has improvished us 
further. An Independent Commission of the South has therefore 
been set up under the charimanship of former President Julius 
Nyerere to examine and propose practical measures for us to take. 
We hope the United Nations and member countries will help this 
Commission in every way possible. 

Malaysia wishes to join other developing countries in calling 
the developed countries to address in a just and equitable manner 
the various issues facing the international economy so as to ensure 
a stable and sustained international economic growth, as well as 
foster an international trading and financial system responsive to 
the needs of and be of benefit to all nations. It is in this spirit that 
Malaysia welcomed the recent launching of the New Round of 
Multi-lateral Trade Negotiations in Punta del Este this September. 

A major issue confronting us that requires urgent attention is 
the international drug problem. Its modern-day manifestations 
including the subjegation of whole nations amplifies the need for 
concrete and decisive international action to overcome this threat. 
Malaysia therefore welcomes the convening of the International 
Conference on Abuse of Drugs and Illicit Trafficking in June next 
year. This opportunity should not be wasted. We should pool all our 
resources and combine all our efforts to remove this scourge that is 
sapping the vitality of our nations. 






The 41st Session of the General Assembly 147 

A glut situation then arises and becomes aggravated when the 
rich countries subsidised the production and sale of their 
commodities. The poor countries can never subsidise to the level of 
the rich and they lose all their traditional markets. 

If, in the past, the terms of trade were such that we had to sell 
more and more commodities in order to pay for less and less 
manufactured goods, now we cannot even sell more commodities to 
pay for the even more expensive manufactured goods. And 
Governments find it increasingly difficult to earn sufficient foreign 
currency to pay their debts. 

The collapse of commodity prices results in a chain reaction 
whereby all economic activities are slowed or forced to a standstill. 
As usual, it is at such times that creditors become predators. 

How then can we honestly say that the rich developed countries 
are not to be blamed for our economic miseries ? How can we look 
at future meetings of the seven richest industrialised countries with 
equanimity ? 

There is also at the moment an inadequate international 
monetary and financial system. Sovereign nations are no longer 
masters of their own currency. Speculators including banks can 
push currencies up or down at will. Indeed, trading in goods has 
been displaced by trading in currencies. The situation is anarchic 
and serious-minded people must find a new monetary regime that is 
more orderly if the problems of the debtor and creditor nations are 
to be resolved. 

In the first place creditor countries should assist in increasing 
the rate of growth in the indebted countries. There should be a 
reduction of interest rates, stabilisation of the exchange rates, 
reduction of budget deficits, planned recovery in the major 
developed countries and increasing market access for exports of 
developing countries. 

In addition, international financial institutions should provide 
the funds to meet the requirements of long term development 










146 The 41st Session of the General Assembly 



in New York today at a time of severe adversity in the economic 
field, for almost all developing countries. The underaiining of the 
economies of developing countries, in recent months, is 
unprecedented in scope. The debt burdens of developing countries 
is now at its highest level while the terms of trade for us are getting 
worse and worse. 

We do not want to blame the rich countries for all our woes but 
the fact remains that it is their action that is at the bottom of our 
unprecedented economic crisis. 

Let us take the national debts as an example. When the seven 
rich countries had trade imbalances, their solution was to force the 
revaluation of the Yen and the Deutschmark. Many countries of 
Southeast Asia borrow Yen extensively. The appreciation of the 
Yen alone has increased Malaysia's Japanese debts by sixty percent. 
Other countries are even worse off. 

If the problem is massive Japanese imports into North 
America and Europe, it would have caused less damage to the poor 
countries if very high import duties are imposed. But Yen 
revaluation which has caused havoc to our economy has done 
nothing to limit imports of Japanese goods into North America or 
Europe. 

The developing countries all depend on commodity exports to 
earn foreign exchange. Now all commodities are experiencing very 
low prices, some falling by more than sixty percent. A combination 
of factors has brought about this across the board price depression. 

Firstly, new technology has rendered the traditional raw 
materials irrelevant. Either new and cheaper materials are 
substituted, as when glass fibre replaces copper wire in 
telecommunications, or the quantities used are so much reduced 
that the raw material as an input is irrelevant. At the same time, 
new technology has also immensely increased production of raw 
materials. 






The 41st Session of the General Assembly 145 

However, Vietnam seems intent on rejecting everything other than 
its own military solution. 

In Central America, the super-powers and their proxies are just 
as active, trying to shape governments and countries in their own 
images through subversions and through provoking and directing 
rebellions. Is the majority in this organisation wrong when it 
condemns such acts ? If there is an "automatic" majority, isn't there 
also a tendency on the part of the big powers to automatically use 
their brute strength when they dislike the stand of the majority ? 

One of the many intractable issues confronting us is that of 
disarmament - an issue which this organisation has been grappling 
with for many years. It is obvious that the problem of disarmament 
cannot be effectively addressed unless major powers are resolved to 
negotiate a halt to the proliferation and the eventual elimination of 
the nuclear arsenals. Already we have accumulated enough nuclear 
devices to destroy the world. Even if we decide to dispose of them, 
we cannot. We have already condemned ourselves to permanent 
fear of radiation and destruction. Doomsday may be nearer than we 

think. 

It is indeed a horrifying prospect that the survival of mankind 
should be dependent on a "Balance of Terror", Malaysians are 
called "barbarians" because we hang convicted white criminals for 
drug offences, as we hang others for the same crime. What do we 
call people who threaten to wipe out the whole human race in 
fulfillment of their war strategy ? 

The cause of peace cannot be served by wasting scarce 
resources on nuclear arms. If the super powers stop their nuclear 
build-up we will not ask them to spend their savings on eradicating 
poverty, hunger and disease. They can spend it on themselves, by 
all means, for even that is better than the useless manufacture of 
these terrible indestructible weapons. 




UN 




We 






144 The 41st Session of the General Assembly 




permanent member of the Security Council, one of the countries 
that we are expected to entrust questions of world peace and 
security, to perpetrate such an act, cannot but leave us all in a state 
of permanent fear. We can never accept what has happened in 
Afghanistan as a fait accompli. We must continue to condemn the 
Soviet action and that of its puppets : just as the majority of the 
people of Afghanistan, despite the terrible odds, continue to fight 
and resist the aggression. 

Similarly, the international community should never acquiesce 
to Vietnam's invasion of Kampuchea, Indeed, the international 
community has repeatedly affirmed its condemnation of Vietnam, 
but nevertheless, that country persists in its intransigence in 
rejecting all efforts for a peaceful solution. This is indeed an 
arrogant attitude, made no less so because of the firm backing that 
Vietnam has been getting from a superpower. It is ironic that 
Vietnam, which was itself subjected to a long struggle against 
foreign domination, should now seek to impose its domination on a 
small, weak neighbour. 



Mujahideen in Afghanistan 



peopi 



struggle. While Malaysia and the ASEAN countries hail the efforts 
of the Kampuchean resistance under the leadership of Prince 
Norodom Sihanouk, we have always encouraged a negotiated 
solution, It is in this context that we urge Vietnam to reconsider its 



forward 



Democratic 



Malaysia believes the eight-point proposal contains the 



can 



and peaceful 



policy of national reconciliation which includes all parties. The 
proposals also provide for free elections in which all parties can 
take part. Surely this is a just and workable proposal in consonant 
with the principles of self-determination and the United Nations. 






The 41st Session of the General Assembly 143 

the same time, they have to confront a hostile media which is 
dominated by the Zionists. The Palestinians, therefore, unlike the 
Israelis, have to fight all odds in their struggle for their rights and 
identity. In the process, the Palestinians have always been 
condemned by the world while ignoring the fact that Israel itself is 
a product of terrorism, that its unceasing intimidation, harassment 
and victimisation of Arabs in the occupied territories and 
elsewhere, is purely and simply a policy based on terrorism. 

Since we are on the subject of terrorism, let me state 
categorically that my country joins the international community in 
condemning terrorism. It is indeed significant that the United 
Nations was able to adopt a resolution, by consensus, against 
terrorism. Our concern must cover acts of terrorism by 
governments. While we should not be selective in our 
condemnation of terrorism, let us not ignore the fact that policies 
such as those practised by Israel are based on terror and invite 
retaliation based on the same psychology of terror. If we are to 
condemn and act against terrorism, let us not be selective, nor must 
we resort to it as a counter-measure. 

In many of the major crises that confront the world, the 
majority of states are reduced to being bystanders, powerless to act 
or influence, save perhaps by our moral outrage and our please and 
appeals. Even in some cases of seemingly limited and local 
conflicts the hand of a greater actor is thinly veiled, fueling the 
conflict. Our inability to act is even more circumscribed when a big 
power is involved, and openly ignores all the basic tenets of the 
United Nations Charter. But, as small developing states, we must, 
nevertheless, continue to raise our voices against any instances 
when important principles such as the national sovereignty and 
territorial integrity of states are violated and ignored. We, the small 
nations, are all potential victims. 

The case of Afghanistan, serves as an example. An 
independent, sovereign nation is invaded and occupied by one of 
the most powerful countries in the world. For the Soviet Union, a 







142 The 41st Session of the General Assembly 



people on the basis of Security Council Resolution 435 without any 




(C 



Namibians 



We 



a holocaust inflicted on the 



Palestinain people- Israel, on the one hand, is given what amounts 
to carte blanche to do whatever it likes, through the support and 
protection of super-powers, which are in a position to frustrate any 
attempt by the international community for a solution based on 
justice. It is obvious that, in the absence of an even handed policy 
by the superpowers, the United Nations will be unable to act 
Israel's borders will continue to expand, annexing Arab lands as it 
wishes, and any action that Israel takes, however horrendous, will 
be justified in terms of safeguarding its national security. 

The Palestinian people, on the other hand, have no legitimate 
recourse as Israel, given the limited resources at their disposal. At 









because of the so-called "misdeeds*' of a totally different nation. 

The Palestinian question is another issue that this organisation 
has failed to make any impact on, despite the fact that this subject 
has appeared regularly on the agenda almost since the founding of 
the United Nations. The inability to resolve this central issue has 
resulted in the whole of the Middle East region remaining in a 
constant state of turmoil. 

The problem of Palestine began with the creation of Israel, at 
the expense of dispossessing the people of Palestine. Since Israel 
owes its existence through a decision of the United Nations in 
1948, and that decision was honoured and upheld by the big 
powers, it is incumbent upon these same powers, if not Israel, to 
honour and uphold subsequent UN resolutions on the same issue. 

The clock cannot be turned back and we have to accept the 
reality. So too are the Palestinian people, a reality with their own 
histoiy, their own traditions, culture and national identity. It is also 
a reality that the Palestinians have been reduced to a nation of 
refugees, who, for two generations, have been born in refugee 
camps : hounded, persecuted, bombed and vilified. 









The 41st Session of the General Assembly 141 

The way forward now is to embark seriously on sanctions. 
There have been arguments from certain countries that sanctions 
are ineffective and will only impose economic hardships on the 
front-line states and worsen the situation for the blacks in South 
Africa. It is admitted that sanctions would not be painless for 
neighbouring African states and the blacks in South Africa. But 
surely the indignities that they have suffered for so long under 
apartheid are incomparably more painful. Besides if we are really 
determined, there is a lot that we can do to alleviate this suffering 
and to bring about quicker results. 

The blacks in South Africa and the front-line states realise what 
they are in for. The colonial powers had so structured the economy 
of these states so as to render them completely dependent on South 
Africa. Retaliation by the Pretoria regime is thus easy and effective. 
It is made even more effective by the willingness of South Africa to 
sabotage lines of communication, particularly of the land-locked 

states. In this, South Africa is being helped by rebels nurtured by 
certain countries. 

The Non-Aligned Summit in Harare decided upon the setting 
up of a Solidarity Fund for Southern Africa, But the support of the 
Western World and Japan is necessary, if the aid is to have any 
substance or effect. During the blockade of Berlin a vast airlift was 
organised to break the blockade. South Africa's counter-blockade 
must be broken in the same way and with the same determination 
by the rest of the freedom loving world. 

Sooner or later this travesty of a Government that sits in 
Pretoria and its hateful apartheid policy must go. Let us all help to 
make it go sooner rather than later. Let us be determined to give 
every help by blockading South Africa and heping to ensure that 
supplies and aid reach the front-line countries. 

It is time that countries which profess lofty principles and are 
ever ready to condemn and even subvert third world countries for 
alleged suppression of freedom translate into action what they 
preach. South Africa must be freed. Namibia must be returned to its 






140 The 41st Session of the General Assembly 




the United Nations was established. Whatever our dissatisfaction 
may be with the United Nations, membership in the organisation 
requires us to accept certain basic principles and to operate in 
accordance with agreed ground rules. The issue is not control 
through majority voting rights. It is rather the time consuming and 
painstaking process of seeking understanding and consensus to 
resolve problems that face the general membership. 

While we hear so much criticism of the ineffectiveness of the 
UN from certain quarters, they remain strangely muted on some 
issues where the UN has indeed failed - failed not due to lack of 
trying, but failed simply because of obstacles which render many 
United Nations resolutions on the issues unimplementable. Simply 
put, they failed because of the attitude of the big powers. 

We are outraged that in spite of our efforts for so many years to 
bring an end to the system of apartheid in South Africa, it still 
exists, flaunting every concept and principle of human decency. 
None of us deny that morally what is happening in South Africa is 
totally indefensible. Yet it exists because a few rich and powerful 
nations, that can do most to dismantle it, will not participate in any 
meaningful way, to end this diabolical system. These nations, who 
while on the one hand condemn apartheid, on the other continue to 
give it sustenance by refusing to abandon policies based on 
"constructive engagement" and "gentle persuasion" which have 
clearly failed. Yet these same nations have been known to apply 
naval blockades when solving their own problems. 

Apartheid is a system which has institutionalised racism for the 
purpose of establishing and maintaining domination of a white 
minority over a black majority. Recent developments in South 
Africa prove beyond any doubt that Pretoria will not be persuaded 
to abandon its policy of apartheid. Indeed, the regime is 
categorically and adamantly committed to maintaining and 
enforcing apartheid. Therefore, to further pursue a policy such as 
"constructive engagement" will only mean sending wrong signals 
to Pretoria. 





The 41st Session of the General Assembly 139 

this organisation in the wake of the increasing membership 
resulting from decolonisation. It was then that talks about "tyranny 
of the majority", about "automatic" Thirc 



World 



same 



it also became fashionable, as it were, in some quarters, to malign 
and denigrate the United Nations with charges of "bloated budgets" 



and "extreme" and 



99 



resolutions. 




Indeed, it is simplistic and even damaging to this organisation 
to pretend that the United Nations needs no improvement and 
cannot be made more effective. Certainly, over the years, some 
"fat" has accumulated which needs to be "trimmed". Its efficacy 
must be reviewed periodically in order to enhance its role. But the 
motive for improving the UN must always be premised on the 
precepts enshrined in the Charter. While the United Nations 
appears not to have escaped the effects of a world in recession, to 
actually attribute the current financial crisis to late payments by 
member countries, would be a gross distortion of facts. 

The present cash flow crisis has been the result of withholding 
of regular contributions to the organisation on the one hand, and an 
over-staffed secretariat, on the other. While we commend the 
efforts of the Group of 1 8 to reduce the staff levels in the secretariat 
and to rationalise the organisation's administrative and budgetary 
procedures, we cannot agree with any rationale that obligatory 
contributions by any member country can be withheld in order to 
force the acceptance of conditions unilaterally decided by a 
country's own national legislature. However unpalatable existing 
rules and procedures may appear to be to each member country, 
any effort to amend such rules must be undertaken within agreed 
procedures and in accordance with the system in place. Any hint or 
suggestion that a member country, however big or small, can 
unilaterally impose conditions, can only bring about difficult 
precedents inconsistent with the spirit and Charter upon which the 
United Nations was founded. Rules and procedures built around 
such a basic concept of the equality of states, must not be tempered 
with, for this has been one of the fundamental pillars upon which 





138 The 41st Session of the General Assembly 




tomorrow, for justice, peace and stability, and prosperity for all 
mankind. It is therefore imperative that the United Nations should 
remain relevant, its role enhanced and not made subject to the 
interests of individual states or blocs. Despite misgivings that some 
may have of the United Nations, let us not forget that the UN can 
only be what we all want it to be. The reality is that a few wealthy 
and powerful nations have always, in spite of charges of "automatic 
majorities", "extreme" and "useless" resolutions, had the edge in 
shaping the United Nations. If the organisation falls short of 
expectations, the responsibility rests heavier on the shoulders of 
those same powerful nations who expect the United Nations to be 
perhaps a creature in their own image, serving only certain 
perceived ends, for certain perceived interests. 



To be sure, the responsibility of course, also lies with the 
smaller developing countries. Considerations based purely on 
ideological or political lines, cannot contribute to meaningful 
solutions. As small developing countries, we must remain sensitive 
to our responsibilities, just as we would wish the developed and 
powerful countries, to base their decisions on the merits of a 
particular issue, governed by principles which are central to the 
ideals of the United Nations. There is a need for us to temper the 
majority we enjoy against what is relevant, practical and realistic. 
Most importantly, we should not allow ourselves to be proxies, 
basing our decisions on ideological attachments or block interests, 
without regard to the principles involved. There are also some 
among us who do pay lip service to these principles, but remain 
strangely muted, when it suits them and when these principles are 
trampled upon. A few among us also disregard principles, violating 
the territorial integrity and sovereignty of weaker smaller states, 
seeking recourse through arms and military power. Let us, the small 
nations, exercise our responsibilities as members of this 
organisation with maturity, sobriety and a sense of justice and fair 
play. 

It is not coincidental that some of the nations which founded 
and pioneered the United Nations, grew more disenchanted with 






16- The 41st Session of the General 



Assembly 



(*) 





For the past several years we have witnessed with increasing 
concern the steady decline of the United Nations, Are we to stand 
by and watch this organisation sink into an irrelevance that it may 
never recover from, or should we act with the common objective of 
restoring life and meaning back to the United Nations ? If we are to 
judge by what was said by the many important and illustrious world 
leaders during the 40th commemorative session held last year, we 
appear unanimous in our concern that this organisation should not 
be allowed to suffer a fate perhaps similar to its predecessor, the 
League of Nations, Given the benefit of hindsight we all know why 
the League failed and the consequences that followed. It is perhaps 
sobering for us to reflect upon the consequences of a United 
Nations which is so eroded that it becomes progressively a 
meaningless ritual for us to meet here once a year, say our piece, go 
back and forget about it until the next session. Unless real 
constructive steps are taken to remedy the situation, this downward 
spiral will continue until the very existence of the United Nations is 
put into question. For, in the final analysis, if this organisation 
serves no one, why subscribe to it at all ? 

For the majority of us, the small, developing nations, a world 
without the United Nations is almost unthinkable. In fact, many 
nations here owe their independence to the work of the 
Decolonisation Committee of the United Nations, To us, the UN 
transcends mere symbolism. In the UN lies our hope for a better 



(*) A speech at the Presidency of the 41st Session of the General Assembly. New York 
29.09.1986. 





1 36 The 43rd Session of the United Nations General Assembly 

I have very confidence that this 43rd General Assembly will 
prove to be deliberative and fruitful. The time and circumstance 
have never been more propitious. Our multilateral institution stands 



on a strong wave of credibility. If we can be weary of war and 
strife, and be ready to beat our swords into ploughshares, then we 
can devote our collective energies to our economic and social 
advancement. The next challenge, if more formidable, will be the 
ability of this institution to grapple with the issue of international 
economic asymmetry in the context of the need for equitable 
resources management. It should be our concerted purpose to 
ensure that the last decade before we enter into the next millennium 
will be one of peace and construction for the benefit of all. 






The 43rd Session of the United Nations General Assembly 135 



hoc charitable efforts. The answer would lie in a full time and. fully 
manned authority to fight against the scourge of poverty. This 
civilization of ours will be condemned by posterity if we can put 
man on the moon but we cannot give enough help to the needy on 
earth at only a fraction of the cost. 

Inequality is the bane of human society. Democracy 
purportedly cherished by all, is associated with equality and 
equitability. While governments are urged to be democratic, in the 
affairs between nations democracy is noticeably absent. In the 
community of nations, the strongest and the richest take advantage 
of the weak and the poor. There is no equality there. 

This does not happen only in the economic sense but also in the 
political sense. Ideologies and philosophies as well as value 
systems are forced upon weak nations in the name of democracy. 
As with fanatical religious proselytisers, the so-called champions of 
democracy are not averse to using undemocratic and coercive 
means to force their particular brand of democracy on the weak and 
the poor. Refusal to comply, results in all kinds of economic and 
political arm-twisting. 

Democracy must confer a freedom of choice. No one has a 
monopoly on the democratic type that everyone should have. 
Certainly, no one should force his own choice and interpretation on 
someone else. While harsh and even violent methods may be used 
to force dictatorship to yield to democratic forces, it would be 
tragic if a working, prosperous democratic nation is destroyed 
because some self-appointed democrat felt it was not democratic 
enough. This holier than thou attitude is out of tune with modern 



mores. 



West 



making. Do not expect colonial territories ruled autocratically for 




Western 



democracies overnight. 







The 



international drug problem. The seeming impotence of the 
international community to combat the drug threat brought the 
realisation that without the manifest political will of nations to act, 



can 



ICDATT 



declaration and the Comprehensive Multi Disciplinary Outline of 
Future Activities, represent a collective struggle to eliminate drug 
abuse and illicit trafficking. 

Malaysia congratulates the U.N. and the Secretary-General 
for this success and this important beginning. The momentum 
created by ICDAIT last year must be maintained. In this 
connection, Malaysia welcomes the convening of the 
Plenipotentiary Conference on the New Convention Against Illicit 
Traffic in Narcotic Drugs and Psychotropic Substances in Vienna 
from November to December this year to adopt the new convention 
which will plug an important loophole and provide for further 
action against illicit drug traffickers. 

We are always concerned when there is extreme disparity 
between rich and poor within any country. But in some countries, 
there is no disparity. Everyone is just poor. If we are asked to 
imagine what poverty is like in these poor nations, we will find it 
extremely difficult to visualise it accurately. But we need not 
imagine. Today we see in colourful detail accompanied by sound 
and motion the extent and horror of human poverty. We see living 
children being literally devoured by flies* We see skeletons 
hobbling around. We see people so ill that we wonder how they 
survive at all. 

Even if we have to spend billions on weapons, on preserving 
the beauty of nature, the trees and the forests, the rare insect 
species, and the other things that we claim will enhance the quality 
of our life, we have no excuse in this day and age to permit such 
misery to befall millions of fellow humans. 

The response of millions of ordinary people to the appeals for 
aid to the suffering poor is laudable* But the task is too big for ad 






The 43rd Session of the United Nations General Assembly 133 

their representation at such gathering when issues which affect 
them are taken up. 

The debt crisis is debilitating for the affected countries, 
diverting attention and energies away from domestic political, 
economic and social needs. While the crisis has deepened in the 
past year, we see hope in the initiatives of some commercial banks 
to write-off their loans and of governments which have converted 
some of their official loans into outright grants. UNCTAD's 
proposal for a thirty percent cut in commercial bad debts owed by 
the 15 most heavily indebted countries merits serious 
considerations. The World Bank and the IMF must engage more 
actively in the design and creation of a debt reconstruction facility. 
Proposals abound, but the international community must quickly 
study various modalities to relieve those countries which are 
carrying impossible burdens. The United nations has provided the 
forum for detailed discussion on the debt crisis and participated in 
the search for solutions. Malaysia fully supports the United Nations' 
efforts in this regard and endorses the recent recommendations 
made by the Africa Recovery Review Committee to substantially 
increase financial flows to Africa to ensure reform and 
development. 

Two years ago during the 41st Session of this Assembly, I 
spoke about the initiative of the developing countries to set up an 
independent South Commission. The Commission has since been 
set up to complement and supplement other efforts in making a 
fresh and objective analysis of the formidable economic, social and 
political challenges confronting the developing countries and 
attempts to identify areas for practical and mutually beneficial 
South-South cooperation. It is heartening to note that since its 
inception in July last year, the Commission has vigorously pursued 
the responsibilities entrusted upon it. 

The International Conference on Drug Abuse and Illicit 
Trafficking held in Vienna in June 1987 brought home to the 138 
participating countries the extent and seriousness of the 






132 The 43rd Session of the United Nations General Assembly 

lend its strong support for the early conclusion of a convention for 
the complete prohibition of the production, research, stockpiling 
and use of all chemical weapons. 

The economic issues before this Assembly would appear to be 
stale issues, for they have been repeatedly debated over the years. 
But being stale does not make it any less relevant, nor less urgent. 
On the contrary, the resolution of these economic problems, such as 
the establishment of a fairer and more favourable international 
trading environment, a re-examination of the role and functions of 
the multilateral financial institutions, a review and re-alignment of 
the international exchange rate regime and a resolution of the 
international debt problem would be positive beginnings of the 
United Nations' work programme in the economic area. 



Malay 



manufactured 




importance to the Uruguay Round of the Multilateral Trade 
Negotiations. While the objective of the Uruguay Round seeks to 
retain an open international trading system and to promote 
increased trade liberalisation, we are also concerned about the 
opposing trend of increasing integration which brings about greater 
exclusion. It is our hope therefore that the intentions of the 
European Economic Community to achieve an integrated internal 
market by 1 992 does not obstruct efforts under the U,N. auspices 
aimed at greater trade liberalisation. To effectively maintain an 
open and liberal international trading environment, the developed 
countries in particular must curb domestic pressures for 
protectionist policies which have historically proven to be myopic, 
leading to distortions in trade and stifling growth and expansion. 

Aside from restraints on protectionist tendencies, the world's 
trading nations must also agree on a more realistic and broad-based 
action on their currency-realignment. Agreements confined only to 
an exclusive group have proven disastrous to the poorer nations 
whose currencies and small trade advantages have been seriously 
affected. The interests of the smaller nations are best served by 






The 43rd Session of the United Nations General Assembly 1 3 1 

from the stockpiling and continuous development of nuclear and 
other weapons of mass destruction but also from the growing 
arsenals of sophisticated conventional weapons. We are now also 
beset with the problem of nuclear and toxic wastes dumped in the 
developing countries. Our efforts at arms control and disarmament 
must proceed on all fronts, and a prerequisite for any success in this 
regard must be a general improvement in the climate of relations 
amongst states. An important start has been made with the signing 
of the Agreement on Intermediate Nuclear Forces between the 
United States and the Soviet Union in May this year. This 
agreement is an important breakthrough and should generate the 
necessary mutual confidence and trust to conclude negotiations on 
the reduction of strategic weapons and on the additional verification 
procedures required for a complete test ban treaty. 

While the two superpowers with the largest arsenal of nuclear 
weapons must carry the primary responsibility for bringing about 
progress in nuclear disarmament, multilateral approaches should 
make an important contribution in the attainment of mankind's aims 
of a safer world through arms control and disarmament. 

We regret that the outcome of the General Assembly*s Third 
Special Session devoted to Disarmament did not meet with our 
highest expectations, but we remain hopeful that the steady 
improvement in the international climate will generate the 
necessary political will for the success of such multilateral 
initiatives, which provides the best opportunity for a genuine 
harmonisation and reconciliation of all interests. The resources 
released from the successful achievement of the disarmament 
process would provide a source of much needed funds for 
humanitarian work and productive investments in the economic 
development of the developing world. 

Outer space, which we reaffirm as the common heritage of 
mankind, should be used exclusively for peaceful purposes and we 
urge that negotiations on the prevention of the militarisation of 
outer space should begin in earnest. Malaysia would also like to 







130 The 43rd Session of the United Nations General Assembly 




the peace process will be given renewed impetus by the very 
leaders whose vision and statesmanship led to the signing of the 
Esquipulas Agreement. 

In raising the issue of Antarctica at the U.N., it was the 
intention of Malaysia and the other like-minded countries to draw 
attention to the considerable environmental, climatic and scientific 
significance of the continent to the world. We also earnestly seek 
an international instrument having universal validity and serving 
the interests of and for the benefit of mankind. 

It is most regrettable that a Convention on the Regulation of 
Antarctica Mineral Resources Activities has been concluded 
recently in total disregard for U.N. resolutions calling for a 
moratorium on all negotiations on a minerals regime until such time 
as all members of the international community can fully participate 
in such negotiations. We cannot understand the haste because all 
the minerals that can possibly be found in Antarctica can be found 
in plenty elsewhere. 

We also regret that the General Assembly appeals for urgent 
measures to exclude the racist regime of South Africa from 
participating in the meetings of the Consultative Parties at the 
earliest possible date, have not been acted upon. 

Antarctica represents to us a touchstone on the constancy of the 
adherence of the Consultative Parties to fundamental principles and 
norms which have evolved through common endeavours, and have 
gained universal currency in the course of the democratizing 
process of international relations and institutions. We remain 
steadfast in our conviction that a regime for Antarctica built on 
such foundations will better reflect and respond to the needs of our 
age than the one founded upon circumstances and considerations 
which are tainted with colonialist adventurism. 

The issue of disarmament must remain high on the agenda of 
this organization and must continue to merit the urgent attention of 
the international community. Threats to mankind derive not only 






The 43rd Session of the United Nations General Assembly 129 




Jakarta Informal Meeting in July. This meeting was a regional 
initiative which is an important milestone in the process of finding 
a comprehensive political solution to the Kampuchean problem. 
This initiative should be allowed to continue. The present 
international climate augurs well for the parties concerned to come 
together in the near future to achieve agreement on the issues. 
Malaysia welcomes the efforts of the Non-Aligned Movement to 
complement regional efforts on Kampuchea. 

Peace in Kampuchea will contribute tremendously to regional 
peace and security. It will facilitate the way for more cooperative 
relations among the states of Southeast Asia, particularly between 
ASEAN and Vietnam. I^ is our hope that the peace that we long for 
will bring about a climate of regional stability and cooperation 
which can then realise early the regional aspiration for zone of 
peace, freedom and neutrality in Southeast Asia. 

The Vietnamese invasion and occupation of Kampuchea has 
resulted in the displacement of a large number of people. Further 
the influx of boat people from Vietnam seeking better opportunities 
elsewhere have for several years added serious problems to 
countries like Malaysia, Thailand and others. Of late, Malaysia has 
reached an understanding with the Government of Vietnam in 
which the latter will accept the repatriation of those boat people in 
Malaysia, who are not qualified for resettlement in third countries 
and to prevent fresh exodus. We are happy to note that Vietnam has 
agreed to participate in the Preparatory Meeting which Malaysia 
hopes to host to prepare for the International Conference on 
Indochinese Refugees and the boat people. 

In Central America the high expectations raised by the 
regionally initiated Esquipulas Peace Agreement have not yet been 
fulfilled. The aspirations of the peoples of Central America for 
peace, freedom and justice remain hostage to the harsh dictates of 
international and external divisions in the region. Coercive 
measures from outside the area only compound the problems of the 
region, and should not be allowed to continue. It is our hope that 





128 The 43rcl Session of the United Nations General Assembly 




and independence. It is our hope that all parties to the agreement 
will enter into the spirit of the times and bring peace and freedom to 
the long suffering people of Namibia. Familiar with the record of 
the Pretoria regime in exploiting every opportunity to perpetuate its 
iron grip on Namibia, we must continue to apply unrelenting 
international pressure on the regime to honour its commitments. 

In the meantime, our support of SWAPO must continue 
unabated. We have seen how SWAPO's successes on the 
battlefields of Namibia have forced the hand of the Pretoria regime 
to reluctantly agree to a negotiated solution of the problem. 
Pressure must therefore be sustained on the ground to prevent 
South Africa from reneging on its promises. 

The question of Kampuchea has been a subject for debate at 
every United Nations General Assembly Session for the last nine 
years. With the support of a huge majority of its members, this 
Assembly has repeatedly called for the total withdrawal of 
Vietnamese forces, the restoration and preservation of the 
independence, sovereignty and territorial integrity of Kampuchea 
and the reaffirmation of the right of its people to self- 
determination. 

The fundamental issues of the Kampuchean problem have to be 
clearly addressed. Vietnam's forces in Kampuchea must withdraw, 
Vietnam should not be allowed to continue to cloud this issue. 
There cannot be any conditionality. The concerns of the 
international community and ASEAN to prevent the return of the 
universally condemned policies and practices of a recent past must 
be addressed. The Kampuchean people must be ensured that they 
will be free from the horrors of the past. National reconciliation 
under the effective leadership of His Royal Highness Prince 
Norodom Sihanouk will not only heal divisions between the various 
Kampuchean partners, but will also regain for that turbulent 
country its rightful sovereignty and independence. 

The constant search for a solution by the ASEAN countries has 
yielded a significant measure of success with the convening of the 



The 



powers that have been the strongest supporters of Israel to lend 
their influence to convince Israel that its vital interests are best 




served by dialogue and negotiations at a peace conference rather 
than by the mailed fist. Indeed these supporters of Israel must share 
the moral responsibility for the injustice and inhumanity committed 
by Israel against the Palestinians. 

In South Africa, we are confronted with the challenge of a 
regime that seeks to dehumanize human beings on the basis of 
colour. The only response of good men to this crime against 
humanity and an affront to the universal conscience must be to seek 
the total destruction of the evil system of apartheid. It is a delusion 
for anyone to believe that we can effect an evolution of the system 
into something more human and humane. The hideous 
manifestations of apartheid are seen daily in the atrocities inflicted 
on black South Africans. 

Malaysia has never been persuaded by the arguments 
advanced by some, that it is in the interest of the blacks of South 
Africa that comprehensive sanctions should not be imposed against 
the Pretoria regime. We therefore reiterate our call for decisive 
action in the form of comprehensive mandatory sanctions under 
Chapter 7 of the United Nations Charter, 

Consistent with our stand, we have undertaken efforts to 
provide assistance to black South Africans and the front-line states 
to assist them in coping with the destabilisation caused by South 
Africa and to enable them to cope with possible effects which 
comprehensive sanctions would have on them. A total of US$2 
million has been pledged as Malaysia's contribution to the Africa 
Fund established for this Purpose by the Non-Aligned Movement. 
We wish to appeal for generous support by the international 
community for the Africa Fund, which must be seen as part of a 
universal battle to bring about the total elimination of the system of 
apartheid. 

The agreement on the comprehensive settlement of South 
Western Africa, offers Namibia the promise of realizing its freedom 






Assembly 




helplessness the terrible toll exacted by the conflict for eight long 
years. We are therefore thankful that the first crucial steps for a 
durable solution have been taken. It is our hope and prayer that the 
resolve by Iran and Iraq to embark on the path of peace is 
irrevocable, and that they will now turn their full attention to 
marshalling the creative energies and talents of their peoples to the 
urgent tasks of national reconstruction and development. 

Despite all efforts, the Middle East is still embroiled in an 

endless cycle of violence. Israel must bear responsibility for this 
tragic state of affairs as it remains the main stumbling block to any 
peace attempts in the region. The United Nations has not been 
allowed to play its proper role in the search for a settlement 
primarily on account of Israel's intransigence. Israel is single- 
minded in the execution of its policies of aggression and expansion 
and brutal subjugation of the Palestinian people. It has defied the 
international community's call for a total withdrawal from all 
occupied territories. The Palestinian problem, the core of the 
Middle East conflict, remains unresolved due to the arrogant Israeli 
hubris and its continued refusal to recognize the rights of the 
Palestinian people to self-determination and to an independent 
state. 

Israel cannot continue to believe that it can ensure its security 
and survival by adherence to policies which seek to consign the 
Palestinian people to either permanent diaspora or permanent 
oppressive Israeli rule. The holocaust cannot be flaunted by Israel 
as an excuse for treating Arabs under their rule in like manner. 

Israelis policy of dictating to the Palestinians as to whom they 
should choose to speak for them, has been an unmitigated failure. 
The P.L.O. remains the sole and legitimate representative of the 
Palestinian people. The best hope for a durable and comprehensive 
settlement of the Palestinian problem lies in the convening of an 
international peace conference on the Middle East, with the 
participation of all parties, including the P.L.O. Malaysia fully 
supports the convening of such a conference and calls upon those 





The 



a more equitable world order. A United Nations functioning at its 
best will be in the interest of all its members and not simply serve 
the interest of certain powers or group of states. The time for U.N. 
bashing and the assault on multilateralism is over. If universal 



can 



commitment 



Nations. A revitalized United Nations poised to assume even 
greater responsibilities must not be hampered by a lack of financial 
resources. A sine qua non for its very survival is the timely 
payment by member countries of their assessed contributions. 

Malaysia welcomes the signing of the Geneva Accords on 
Afghanistan. There must be complete and faithful implementation 
of these accords by all concerned parties, if the sufferings of the 
people of Afghanistan, after eight years of bloody and brutal war, is 
to come to a definite conclusion and if Afghanistan is to regain its 
independence. At this juncture, may I pay tribute to the late 
President Zia-Ul-Haq of Pakistan for his immense contribution 
towards the successful signing of the Geneva Accords. My country 
and many others will sadly miss the friendship and wise counsel of 
the late President. 

The withdrawal of Soviet forces must continue and be 
completed within the agreed time-frame. It is our hope that the 
accords would be fully implemented to enable the Afghan people to 
freely exercise their right to self-determination through the process 
of genuine reconciliation. 

Malaysia hopes the United Nations humanitarian and 
economic assistance programmes relating to Afghanistan will be 
able to meet the immediate needs for relief and rehabilitation, as 
well as the long term requirements for reconstruction of the 
country. But full implementation of such assistance could only be 
realised under conditions of peace and stability in Afghanistan. 

The acceptance by Iran and Iraq of Security Council resolution 
598 as the framework for the termination of their War is a source of 
satisfaction to us all. The world witnessed in horror and 






124 The 43rd Session of the United Nations General Assembly 




Nations is at its most effective in the discharge of its functions 
when Member States fully support the course of action that the 
United Nations takes. The wiost telling example is the unanimous 
support given by the members of the Security Council to the UN 
Secretary General to bring about an end to the Iran-Iraq war. The 
collective efforts of the Security Council, permanent and non- 
permanent members together, have raised clear hopes towards 
conflict resolutions. We are witnessing for the first time in decades, 
a convergence of interest and will, of member countries to effect 
solutions on major issues. This development, it is hoped, would 
fulfill the vision of the pioneers of the U.N. when they conferred 
upon the Security Council the primary responsibility for the 
maintenance of international peace and security. Malaysia stands 
for the full and effective discharge of the CounciFs conciliatory and 
mandatory powers and for universal complicance with, and 
implementation of the Council's decisions. It is a matter of great 
assurance to all of us, that the increased effectiveness of the 
Security Council has been made possible by the convergence of 
interest and action of the United States and the Soviet Union, 
Conversely it should be instructive to these two countries that they 
are drawing from the best of themselves when they counsel and 
collaborate together with the rest of the world on common 
objectives. 

When one extols the achievements of the United Nations, one 
is not refusing to recognise that the steady improvement of relations 
between the United States and the Soviet Union have helped 
significantiy in bringing about progress on conflict resolutions. All 
of us who have lived under periods of unease and uncertainty, when 
the two powers stared at each other eye-ball to eye-ball, are greatly 
relieved that those two super powers are realistically discussing 
peace and construction between them. They can make an enormous 
contribution to the realisation of the principles and purposes of the 
United Nations Charter. It is our common appeal to both these 
countries that they seek recourse through all the intitutions of the 
United Nations when attempting to defuse conflicts and in realising 





15- The 43rd Session of the United Nations 

General Assembly^*^ 





The General Assembly meets this year at a propitious time 
indeed. World regard for the United Nations has taken a turn for the 
better — influenced as everyone is by the return of peace and the 
promises of peace to many flash points; Afghanistan, Iran and Iraq, 
Namibia, Western Sahara, Cyprus, Kampuchea, and perhaps also to 
the Korean Peninsular. In contrast to the cynicism and the 
disillusionment that many have felt in the past about the U.N., we 
are now witnessing a clear shift towards a better appreciation of the 
role of the U.N. and its relevance to the aspirations of the 
community of nations. We would like to believe that at long last the 
U.N. is coming into its own and fulfilling the tasks of moving 
conflicts from the battlefields to the conference table. 

Malaysia's faith and confidence in the United Nations have 
never wavered but we were saddened to see in the past the struggle 
of the United Nations to retain its relevance and credibility. 
Multilateralism had become a bad word as the powerful nations 
resorted to solving problems on their own. We are therefore pleased 
to welcome this change, this renewal of faith in the U.N. which we 
hope would mean the birth of a new era in multilateralism. 

As an international organisation, the U.N. must be perceived to 
be relevant in meeting the needs of its members, as a forum for 
multilateral deplomacy, as an instrument for maintaining 
international peace and security and as a catalyst for promoting 
international economic growth and development. The United 



(*) A speech at the Opening of the 43rd Session of the United Nations General Assembly. 
New York -04.10.1988. 






VI. THE UNITED NATIONS 






The 33rd Commonwealth Parliamentary Conference 119 

If the discussions of these small groups do not affect other 
countries they are welcome to it. But in many instances the 
resolutions adopted at these meetings affect adversely a lot of other 

countries. 

A case in point is the Group of Seven rich countries. It is as a 
result of this Group's meeting that suddenly many poor countries 
have been made poorer. The exchange rates of different currencies 
have been manipulated so that suddenly poor countries find their 
external debts have been doubled and their export earnings 
reduced. 

Poor countries find it difficult enough to handle banks which 
speculate in their currencies. But against the currency manipulation 
of rich countries they don't stand a chance. And when rich countries 
get together to rearrange the financial and economic affairs of the 
world to their advantage, poor countries cannot but be the losers. 

We must return to multi-lateralism. Admittedly the United 
Nations is cumbersome and some members can be unreasonable. 
But it is still the only truly representative body of the countries of 
the world. It can be improved but it must not be by-passed. The 
CPA, itself a multi-national body, must support multi-lateralism as 
exemplified by the United Nations. 

I am sure that as your plane approached Malaysia you would 
have been warned of the extreme penalty for trafficking in drugs in 



make 



We 



distribute drugs as their destroyers, their murderers. And it is as 



We 



Commonwealth for supporting Malaysia's candidature at the 
Vienna Conference on Drug Abuse and Illicit Trafficking. 






118 The 33rd Coimnonwealth Parliamentary Conference 



Your meeting here therefore is very welcome because you can 



see for yourself the truth and you will hear also the view 



both 



Government and Opposition. You will be able to judge for yourself. 
I am sure other countries in the Commonwealth who are the subject 
of such calumny would welcome the opportunity to put themselves 
on display, so to speak, for all and sundry to examine. 

The CPA is, of course, not so inward looking that each country 
is interested only in its own image. We are also very interested in 
the fate of humanity in every comer of the globe. In particular we 
are interested in he struggle of the blacks in South Africa against 
the crime of apartheid and minority rule. Malaysia has been 
unequivocal in its abhorrence and condemnation of the racist white 
regime in South Africa. It was Malaysia which initiated the 
expulsion of South Africa from the Commonwealth. And as early 
as 1965 Malaysia applied sanctions against South Africa. 

We in Malaysia feel strongly that South Africa should be 
completely ostracised. The excuses that sanctions would hurt the 
blacks more than the whites have been disproved by the realities 
that we see today. The blacks are being oppressed, ill-treated and 
murdered even without sanctions. We are only prolonging their 
sufferings by our half-measures. The only answer is total sanctions 
and isolation. The CPA must urge the doubting Margarets from 
among the Heads of Government attending the CHOGM in 
Vancouver to resolve to apply sanctions now. Then and then only 
will the Commonwealth be meaningful. The few should not allow 
the many to suffer so much for filthy lucre. 

The CPA is a multi-national organisation. As such its 
discussions are multi-lateraL The greatest multi-national 
organisation of all is the United Nations. It was founded on the 
premise that all nations are equal and therefore have equal rights to 
discuss world affairs. However, of late, we see a tendency to ignore 
the United Nations multilateralism in favour of bilateralism or 
limited small groups. 







The 33rd Commonwealth Parliamentary Conference 1 17 

parliamentarian from Commonwealth countries in the intricacies of 
parliamentary practice and its traditions. 

But the CPA, of course, does more than that* It holds 
conferences in countries of the Commonwealth. It also holds 
council or executive committee meetings in the smaller countries 
which are unable to host the big conferences. 

A lot of people travel these days. But many countries are 
missed out because they are out of the way or are too small. The 
people of the Caribbean find litde reason to visit South East Asia or 
the South Pacific and vice versa. But with membership of the 
Commonwealth Parliamentary Association these places are visited 
and friendship and understanding is the result. 

Malaysia is one of those countries which appreciates the 
friendship and understanding of parliamentarians everywhere. We 
are a multi-racial country. It is not of our own making. It was thrust 

upon us during the period when we were under colonial rule. Since 
Independence we have been trying to foster racial harmony. It is 
not easy. As an example the Malays are Muslims and eat beef but 
abhor pork. The Chinese are Taoists or Buddhists and eat port. The 
Indians are Hindus and do not take both pork and beef. 
Theoretically, we cannot even sit down together to eat. But we do 
and we do it often. This clearly demonstrates that Malaysians 
respect each others religions, customs and beliefs, are able to give 
and take and are also tolerant of one another. We, therefore, get on 
reasonably well. 

One would think that the people who inflict this on us would 
appreciate this, appreciate the tolerance of the three major races in 
Malaysia. One would think that we would be helped. But no such 
appreciation is forthcoming. Instead, we read reports that some 
races are badly treated in Malaysia, that very soon there will be 
racial violence, etc. The fact that very soon, soon passes by with 
nothing happening does not deter them. Soon they will report again 
that very soon there will be racial riots in Malaysia. 







1 16 The 33rd Commonwealth Parliamentary Conference 




Commonwealth Foundation, the Commonwealth Science Council, 
the Commonwealth Youth Programme, etc. It would be churlish of 
me not to admit that all these help. That is why we are still in the 
Commonwealth despite our other disappointments. 

The CPA is, as I said just now, quite a different body. It is 
without doubt of the Conmionwealth but it serves the very useful 
purpose of spreading the role and practice of parliament in a 
parliamentary democracy. This is not to say that we cannot leam 
from other sources but the constant exchange of ideas and visits and 
intermingling of parliamentarians during the various conferences of 
the CPA cannot but heighten the perceptions of the 
parliamentarians of what parliament is all about. 

It is important to remember that most of the members of the 
Commonwealth gained independence only a scant three decades 
ago. During the period when they were colonies, parliamentary 
democracy was quite unknown. They were governed by bureaucrats 
with near absolute authority. There may have been Legislative 
Councils but the members were appointed and consequently were 
beholden only to the authorities. There as therefore none of the 
traditions, and the practices associated with Westminster. 

Yet when these countries gained independence they were 
expected to suddenly practise parliamentary democracy. No 
allowance was made for the fact that they had little or no 
experience or training. From Legislative Councils where no 
opposition existed they were expected to take on the thrust and 
parry of open debate between the Government and the Opposition. 
It is a miracle that these countries manage to retain parliaments and 
to survive. 

Perhaps it is the fact that they were able to borrow the 
traditions and practices of the older Commonwealth countries that 
saved them from anarchy. If it is, then we have to thank the CPA 
for enabling the borrowing to be effected. We all know, of course, 
that the CPA is instrumental in exposing and educating many a 





rd 



14- The 33 Commonwealth ParUamentary 

Conferences*^ 




You have before you in this conference matters of importance 
to deliberate. These matters relate directly to the welfare of the 
countries and people you represent, their relationship with each 
other and the roles that they and their Governments play» This is in 
the best tradition of the Commonwealth Parliamentary Association 
or the CPA and it is very commendable indeed. I wish you well for 
I am sure that only good can come from your meeting and 
exchange of views. The knowledge and experience gained cannot 
but help you to understand your own problems better and may even 
contribute towards their solution. 

I am on record as being critical of the Commonwealth. I still 
am. But the CPA is somewhat different. The Commonwealth I 
criticize because far too often it did not live up to its name. There is 
nothing common about the wealth of the Commonwealth. Often 
there is not even a great wealth of understanding between us. Thus 
the rich among us frequently refuse even to understand the 
problems faced by the poor — even when the problem is of their 
making. As the poor struggle to deal with these problems they are 
balaboured with carping criticisms for being not democratic 
enough, and so on. 

But I am not completely right, of course. My officers often 
remind me of the help we and other poor countries receive. There is 
the Commonwealth Fund for Technical Cooperation, the 





(*) A speech at the Opening of the 33rd Commonwealth Parliamentary Conference, Kua- 
la Lumpur. 01,09.1987. 




1 14 The Asean Inter Parliamentary Organisation (AIPO) 




was made to integrate these people. Indeed, they were deliberately 
separated in keeping with the dictxim 'divide and rule'. 

Consequently when independence was gained and democracy 
was adopted the peoples of these new nations found democracy 
very difficult to manage. A system does not work merely because it 
is a good system- What makes it tick is the people who manage or 
participate in it. Not having had any democratic experience under 
colonial rule, the peoples of the newly independent countries could 



and 



of democratic rights. 



That the ASEAN countries have succeeded in mastering the 
intricacies of democracy and to develop rapidly at the same time is 
a matter for much satisfaction. We should not gloat over our 
successes, nor should we rest satisfied with them. There is much to 
be done still to develop our countries. For this we need stability. 
Members of Parliament must know this and they must contribute 
towards stability. Those who undermine stability in the pursuit of 
dubious democratic rights; those who ignore the well-being of the 
majority cannot be considered as having the interest of their 
country or even of democracy at heart. It is for these reasons that 
communists and extremists are not allowed to use democratic 
processes in order to destroy democracy. 

The ASEAN Inter Parliamentary Organisation has a role to 
play in promoting better understanding of the limitations and 
responsibilities of democracy as much as it must promote the 
benefits to be derived from the system. 

I hope that this Assembly will contribute towards the 
betterment of ASEAN countries in particular and developing 
countries in general. 







The 



Parliamentarians in Europe, Asia, Australia and elsewhere have 
been valuable assets. 

Indeed, AIPO has provided a unique opportunity for the people 
of ASEAN, and our friends from elsewhere, an opportunity to see 
parliamentary institutions and legislative processes at work in 
ASEAN. These reflect our people's will and the diversity of 
historical and cultural backgrounds that we are heirs to. Democratic 
and parliamentary institutions and processes have been nurtured 
and have grown in a meaningful way in the countries of ASEAN, 
but they have not escaped the pressures and the tensions created by 
our cultural, ethnic and religious diversity within each of our 
countries. They have not yet become totally immunized against the 
sporadic attacks of adventurous dreamers, of tunnel-visioned 
proponents of alien concepts and of plain anti-social forces. They 
will in time become immune, but in the meantime we must manage 
to hold the fundamentals of our nationhood intact. In the end, 
democratic and parliamentary processes have to ensure our people 
the peace and security that they are entitled to. 

We in ASEAN can be proud that we have in fact been able to 
manage these processes, considering that we have been 
independent, with the exception of Thailand, only since the end of 
the Second World War, Before that we were colonies of Western 
nations, whose imperial interests preclude training in the art and 
science of Government, particularly the democratic form of 
government. The colonial governments we were exposed to were, if 
not totalitarian, at least authoritarian. Except for a few tame 
nominees, the people of our countries were never represented in 
these colonial governments. 

If these colonial governments had problems, they resolved 
these problems without any regard for the feelings or interests of 
the indigenous people. Thus when faced with a shortage of 
manpower to exploit the resources of their colonies, they did not 
hesitate to import culturally and ethnically alien people. No effort 






1 12 The Asean Inter Parliamentary Organisation (AIPO) 



sanctions 



regime of South Africa. 




I would also like to touch on a matter of great importance 
which has become a serious problem affecting many countries in 
the world. I refer of course to the scourge of drug addiction which 
has debilitating effects on the economic and social development of 
our countries. The International Conference on Drug Abuse and 
Illicit Trafficking (ICDAIT) has recommended a comprehensive 
programme for all countries which can go a long way towards 
ridding ourselves of this scourge. It remains for the countries to 
implement them. Malaysia is totally committed to the fight. As you 
know the penalty for trafficking in drugs in Malaysia is death. 
Since we have demonstrated that we discriminate in favour of no 
one where Malaysian laws are concerned, Malaysia has become 
less of a transit country. 

We have come a long way in ASEAN. The forging of a 
common stand and collective will on matters of vital concern to 
ASEAN, both within our region and at the international level, are 
only the outward signs of the quiet progress we have made in 
building cohesion and cooperation among our countries The going 
has not been entirely smooth. The challenges that have emerged 
from time to time have tested our collective will as well as the 
resilience within our countries and in the region as a whole. The 
success we have had reflects the high priority that each one country 
has placed on ASEAN and its viability. As Parliamentarians you 
have a high duty to entrench this priority and progress. 

ASEAN's solidarity and achievements have had the continuing 
attention and efforts of our Foreign and Economic Ministers, but 
we also owe a great deal to the roots of understanding, goodwill 
and cooperation that have been put down by other governmental, 
non-governmental and people's institutions across ASEAN. AIPO, 
as the forum of ASEAN Parliamentarians, has also played its part 
in developing common framework of approaches and actions on 
matters of deep concern to all of us. AIPO*s contacts with 






The Asean Inter Parliamentary Organisation (AIPO) 1 1 1 




particularly well-placed to reject legislative measures which will 
reduce intra-regional and world trade. 

While the Third ASEAN Summit was taking place, President 
Ronald Reagan and General Secretary Mikhail Gorbachev, had 
their summit in Washington. The Treaty they signed to eliminate 
intermediate and short range nuclear missiles marks an important 
step in the reduction of nuclear arms and disarmament. It could 
pave the way for a general multilateral disarmament and usher a 
new era of understanding among countries of varying shades of 
political conviction. If this is achieved, then developing countries 
can divert scarce funds from the purchase of arms to the 
improvement of the living standards of the people. 

In recent weeks the problem of the Palestinian refugees has 
taken new dimensions. In defiance of world opinion and United 
Nations resolutions, the Tel Avid regime is continuing its relentless 
policies of systematic and brutal repression against innocent and 
unarmed Palestinians in the occupied territories. The increasing 
atrocities, bloodshed and injustice being inflicted by Israel are 
against human decency and all that it stands for, Malaysia strongly 
and emphatically condemns the Tel Aviv regime for its cruelties 
against Palestinians in the occupied territories, and calls on it to 
immediately abide by international norms and practice. Israel must 
respect the inalienable right of Palestinians to a national homeland 
so that permanent peace and stability could be achieved in West 
Asia, I would like to suggest that you deliberate on this issue and 
make appropriate recommendations. 

This Assembly is the right forum to discuss the fate of suffering 
humanity, particularly that of the blacks in South Africa. Malaysia 
has been unequivocal in the abhorrence and condemnation of the 
racist white regime in South Africa. We in Malaysia feel strongly 
that South Africa should be completely ostracised. The excuse that 
this would hurt the blacks more than the whites have been 
disproved by the realities we see today. Even without sanctions the 
blacks are still being oppressed, ill-treated and murdered. The only 





110 The Asean Inter Parliamentary Organisation (AIPO) 




the Zone of Peace, Freedom and Neutrality or ZOPFAN in the 
region. 

ASEAN's reaffirmation of its commitment to the early 
realisation of the Zone of Peace, Freedom and Neutrality should be 
translated into positive action, now that the superpowers themselves 
have come to a new and positive phase in their relationship. The 
concept of a Southeast Asian Nuclear Weapon Free Zone is 
therefore ASEANs contribution to the international efforts to keep 
this region free of nuclear weapons and hence help create a more 
stable political environment conducive to world peace. 

Southeast Asia remains an area of strategic importance in the 
emerging era of the Pacific in which the major powers would no 
doubt continue to have a significant role in determining the region's 
future directions. However, it is the primary responsibility of the 
nations of the region to ensure a conflict-free Southeast Asia 
through closer cooperation in the political, economic, social and 
cultural fields among themselves, as well as with other interested 
parties. 

Significant changes have taken place in the economies of the 
ASEAN countries, ASEAN countries are dependent on external 
markets for the export of their commodities and increasingly on 
their manufactured goods. However, the unfavourable global 
trading conditions, compounded by the protectionist trends in the 
developed countries have created difficulties for all developing 
countries, including ASEAN, With this unhealthy environment it is 
even more necessary that ASEAN achieve greater intra-ASEAN 
cooperation in industry and trade so as to be less dependent on 
markets outside our control. 

In this scheme of things therefore, where do Parliamentarians 
stand and how do they contribute towards achieving these goals ? 
While it is the Executive's responsibility to come up with 
suggestions on policies and their modus operandi, the 
Parliamentarians are equally responsible to find ways to overcome 
our national and regional problems. Parliamentarians are 






13- The Asean Inter Parliamentary 

Organisation (AlPOy*) 





The 3rd Meeting of the ASEAN Heads of Government took 
place in Manila in December 1987. The Meeting was a clear 
manifestation of the depth of regional solidarity and unity that has 
emerged within ASEAN. A new impetus was given to the ASEAN 
cooperative endeavours to see it through the next decade and 
beyond. The ASEAN Heads of Government agreed on 
comprehensive Programme of Action aimed at enhancing and 
upgrading every sector of ASEAN's multifarious development 
activities. The Programme of Action is therefore ASEAN*s strategy 
to meet future challenges in a comprehensive, coordinated and 
pragmatic way. 

The political, economic and social interests of ASEAN member 
countries, though diverse, are inextricably intertwined. The 
increasing strategic and economic importance of ASEAN and 
Southeast Asia in general, and the continuing uncertainty in 
Indochina makes it more imperative for the Southeast Asian region 
to accelerate development and progress and to maintain durable 
peace and stability. 

The problems of occupied Kampuchea continue to be a source 
of great concern to us. We in ASEAN must, however, persevere in 
the search for a comprehensive political solution without sacrificing 
the principles of national sovereignty and the right of self- 
determination of the Kampuchean people. The unsettled situation in 




Kampuchea indeed represents an impediment to the realisation of 

(*) A speech at the Opening of the 9th General Assembly of the Asean Inter Parliamentary 
Orcanisation (AIPO) at Kuala Lumpur. 26.0K1988. 





V. PARLIAMENTARY MATTERS 






106 The South-South II Conference 




only be secured through our own efforts. South-South cooperation 
will enable us to cushion ourselves against the arbitrary actions and 
decisions of a handful of countries. It will enable as to maximise 
our advantages and make ourselves collectively self-reliant. 

The North is not our intractable enemy. There is little to be 
gained by an attitude of confrontation. We have to speak the truth. 
We have to say the obvious. But we will still work with the North, 
towards a better world order. We must not forget that the North 
produced such people as Olof Palme, whose untimely death is a 
grievous loss to all. We have friends in the North and we must 
strive to work with them however frustrating the effort. God 
willing, in time we will succeed. 






The South-South II Conference 105 



In the end we will have to do what we have to do. But how sad 
we should prolong the sufferines of the blacks of South Africa. 



We talk often of the need for disarmament 



World 



bought $1,4 billion of weapons from the developed countries. By 
1984 that figure has grown to $29.4 billion. Isn't it about time we 



arms 



arms 



guns 



We 



w 

stop enriching the already rich. 

South-South II has been jointly sponsored by the Third World 
Foundation and ISIS, I am certain that their cooperation will not 
end here. Indeed, this cooperation between the Third World 
Foundation and ISIS should spawn a network of the Third World 
research institutes, which would collectively do research work on 
different aspects of South-South cooperation. We need to pool our 
experiences and resources for this important task. 

Souith-South II could present us with a historic opportunity. I 
would urge the distinguised members attending this meeting of 
Third World thinkers and luminaries to galvanise the South into 
action through the adoption of concrete proposals which can be 
readily implemented. Let our work be meaningful and let us 
demonstrate our sense of purpose. 

Additionally I would suggest an Independent Commission on 
South-South Co-operation with a limited life span tasked with 
reporting to the Group of 77 on specific proposals for practical 
South-South cooperation. 

We in the South have many other problems. But I have said 
enought. 

Each of our countries has gained political independence. But 
we have been denied our economic freedom. This economic 
freedom and the sense of dignity and pride that goes with it can 






104 The South-South II Conference 



media over which we have no controL It is time that our own third 
world news agencies intensify their cooperation and provide true 
and more sympathetic news about ourselves. They will say it is 
propaganda but are not their slanted news northern propaganda ? 

Our concentration at this Conference is on economy. That is 
not to say that politically the South is without major problems. The 
South has many unresolved political issues. And among them the 
South African problem certainly sticks out like a sore thumb. 

When in the mid-60's Malaysia condemned the racialist 
regime of South Africa and demanded that South Africa be booted 
out of the Commonwealth if it continued with apartheid and 
oppression of black South Africans, we were told that such an 
action would be detrimental to the blacks. Today the same 
argument is trotted out at the Commonwealth Meeting in Nassau 
when we demanded that sanctions be applied against South Africa. 

Do we really think that black South Africans would be better 
off today if South Africa remains in the Commonwealth ? Are they 
better off now because we do not apply sanctions ? Are the 
shooting, killing, jailing and torture of the blacks today evidence 
that they are better off because sanctions are not applied ? Has 
Nelson Mandela been released because no sanctions have been 
applied ? Would Steve Biko be alive today ? 

The fact is that we are dealing, not with an inhumane regime 
but an inhuman regime, a regime that is racist in the extreme. The 
only thing that it will respond to is force. If we must meet terror 
with force, this is the time to meet terror with force. The lives of 
black South Africans are as worthy of revenge as the lives of 
anyone else. But it is not revenge and killing that we are asking for. 
We are merely asking for sanctions now by those whose economic 
clout has the necessary force. The black South Africans are 
prepared to endure the pain of sanctions. They ask for sanctions. 
Why do we give this excuse that we want to save them from that 
which they are willing to endure ? 




m 



B 



^nilllM! 





South-South co-operation the Caracas Programme of Actrion 
already provides the nucleus for a Secretariat. What we need now is 
acceptence on the part of member countries of the Group of 77 and 
proper funding. 

One of the objectives of this meeting should be not simply to 
identify areas of South-South cooperation, but to spell out clearly 
what measures should be adopted to implement these programmes. 
We will not see any progress until and unless we commit ourselves 
to certain specific targets. 

Information about developing countries, especially with 
regard to economic activities and policy is very scanty. It would be 
a good thing if the Secretariat of the Group of 77 actively gathers 
information for distribution to interested third world countries. 

An idea worth talking about is the assignment of a Minister 
from each country to oversee South-South co-operation. He could 

monitor on the one hand his own Government's orientation to 

South-South programmes. At the same time, he could ensure that 
appropriate follow-up action is taken following visits of delegations 
from the South. 

We have assembled together here a galaxy of personalities, 
each of whom has made an important contribution in a particular 
field or discipline. You must put your wide-ranging experience and 
your proven capacity for creative thinking to practical use. What we 
need from this Conference are a few ideas and proposals which can 
lend credibility to South-South co-operation. We need to find ways 
and means to mobilise the private sector throughout the South; we 
must get our private sector to inter-act with each other, 

I have dealt at length on South-South economic co-operation. 
But there are other areas where we can co-operate for mutual 
benefit. The cultural field is one. There is a great need for us to 
know each other. We Malays say, 'Tak kenal maka tak cinta' 
(Because we do not know each other, therefore we do not love). 
There is a great deal of misinformation originating from news 




^m 





102 The South-South II Conference 



Reliance amounted to no more than a paper pledge. Our collective 



ormance 



All the members of the Non-Aligned Movement, without 
exception, are members of the Group of 77 and the goals and 
objectives of the Non-Aligned Movement and the G77 in the 
pursuit of South-South cooperation are identical. It is both 
necessary and desirable that there should be a close harmonisation 
of the South-South programmes of the Non-Aligned Movement and 
the wider and more encompassing Group of 77. Indeed the 
institutional machinery and programmes of one should be readily 
available to service those of the other. Wherever possible we should 
have common programmes for both bodies. Here I would like to 
commend the useful work done by the International Centre for 
Public Enterprise at Ljubljana, This Centre, which is now also 
serving as the Secretariat for ASTRO (The Association for State 
Trading Organisations) has a number of useful South-South 

programmes to its credit. 

The Caracas programme of Action which was adopted at a high 
level meeting of the Group of 77 in 1981 should serve as the basic 
framework — the centre of our efforts — for promoting economic 
cooperation in the South. Unfortunately again no tangible benefits 
have been derived by member states from this programme. 

The one area which hold promise for the Caracas Programme is 
the effort to establish a General System of Trade Preference 
(GSTP) within the framework of which they could lower their 
barriers to each other, thereby facilitating trade flows in the South. 
The GSTP negotiations are currently underway and I am sure that 
we sould all like to see these negotiations advance as rapidly as 
possible. 

Institutions are no panacea. In the final analysis it is what the 
members are prepared to do that determines the success or 
otherwise of an organisation. Nevertheless a co-ordinating body of 
some sort must provide the necessary reference point if there is to 
be a common approach in any field of activity. For the purpose of 





The South-South II Conference 1 01 




producers in research and development, the dissemination of 
relevant information and marketing. It is for these reasons that we 
have formed the Tin Producers Association and the Association of 
Natural Rubber Producing Countries. In the past, research and 
development and even marketing was done by the major consumer 
countries. Naturally their priority is to economise on consumption 
and possibly develope substitutes - both of which are detrimental to 
our exports. By doing our own research and development we hope 
to discover new usage and to enhance the value of our produce. 

We feel that bilateral cooperation and regional groupings have 
a lot to contribute towards South-South cooperation. The fact that 
two countries of the South are working together outside the Group 
of 77 or the Non-Aligned Movement does not mean that the 
objectives of South-South Cooperation are not being achieved. A 
multiple of groups of twos or regional groups helping each other is 
as good as having a full-scale South-South Cooperation. Even if 

they compete with each other it is not too harmful. Sooner or later 

they will have to come to terms with each other if they wish to 
survive. 

It would be wonderful if all the hundred over countries of the 
South can stand united and cooperate with each other in order to 
overcome economic, political and social problems. But the truth is 
that that scenario can only happen in dreams. Bilateral or group 
cooperation on the other hand is real and practical. While we wait 
for the ideal, we should do the possible. 

At the Non-Aligned Summit in New Delhi in 1983, we 
adopted a Declaration on Collective Self -Reliance. According to 
this Declaration, the leaders of the South pledged themselves to 
strengthen South-South cooperation on a priority basis. The 
Summit in Delhi also adopted a Comprehensive Action Programme 
geared to producing tangible benefits for the South through their 
cooperative efforts in different sectors. As we turn our sights to the 
forthcoming Non-Aligned Summit in Zimbabwe, we should be 
prepared to admit that the Delhi Declaration on Collective Self- 







100 The South-South II Conference 




North 



in strength. They deal differently with the strong and differently 
again with the weak. Obviously the best results can only be 
obtained by us if we are strong. 

But how do we become strong, if we cannot unite ? Of course, 
it would be good if we can unite. But too many countries with too 
many different interests just cannot unite. We have to recognise this 
and do the next best thing. We can cooperate bilaterally or 
regionally, so long as our partners are from the South, It is not 
something that can be achieved overnight. Nor will the result of 
cooperation manifest itself immediately. But any intercourse 
between the countries of the South must lead to a strengthening of 
their position, just as any quarrel between them must open them to 
all kinds of manipulation by outsiders. 

Many of us in recent years have made special efforts to 
strengthen our bilateral cooperation with countries in the South. We 
in Malaysia have devoted most of our energies to strengthening our 
cooperation with our ASEAN neighbours and with a cross section 
of countries in the Asia and Pacific region. We have also made a 
special effort, notwithstanding the problem of distance, of trying to 
develop areas of cooperation with some countries in Africa. 

Take education for example. The setting up of an international 
university can effectively reduce part of the billions that flow North 
because we send students there. Those students studying in 
developed countries together with others also from developing 
countries, will develop contacts that will help our relations later on. 

Educational institutions are just an example of how we can help 
ourselves. There are many other practical areas which will help us 
reduce our dependence on the rich while saving our hard-earned 
money. Since money means power, we will in fact be contributing 
towards the power of the South. 

Although Commodity Agreements have not proven successful, 
Malaysia feels there is merit in cooperation among commodity 





The South-South II Conference 99 



on. All the other commodities are equally affected. We have no 
manufactured products to export in the place of commodities. 

The collapse of the commodity trade results in unemployment 
which in turn leads to political instability. If the Government is 
weak it may fall. The succeeding Government can do no better 
because the causes of economic recession are external, beyond the 
control of the Government Political instability would then become 
continuous, further preventing economic recovery, A vicious circle 
is started which escalates inexorably. 

The seven major industrialised countries of the North are today 
meeting in Tokyo at their Annual Economic Summit. Their 
deliberations and decisions, whether these relate to the debt 
problems, interest rates, protectionism, exchange rates or to global 
liquidity, will all have far reaching impact on the global economy. 
And yet we in the South whose lives will be crucially affected by 
the decisions of this summit will have absolutely no say in their 
deliberations. It would seem that not only is the New International 
Economic Order rejected but the North has responded with closing 
their ranks and creating their own economic order for the world. 

In the face of this refusal by the rich to consider even 
enlightened self-interest when dealing with tlie South, how should 
we react ? Should we set up an organisation of the states of the 
South as the United Nations was set-up ? Should we put-up a united 
front ? Should we draw up a comprehensive policy which will 
govern all our actions when dealing with the North ? 



We 



We 



We 



Would 



better ? 



The answer is obvious. We do not need another organisation. 
All we really need is the recognition that unless we help to 
strengthen each other we are not going to be in a position, singly or 






B 



I 





98 The South-South II Conference 



for the fruits of our labour and our soil, the problem of mounting 
debt in many countries, especially those in Latin America, have 
imposed unbearable strains on our economies. In Africa the battle 
for survival remains as grim as ever. In Asia too, after making some 
headway we are experiencing sizeable declines in our growth rates 
as more and more barriers go up against our exports. It is 
frightening to realise that we are not in charge of ourselves and that 
a few countries, indeed a handful of people can make or break us. 

A few years ago we proposed a New International Economic 
order. It was an equitable proposal, considering that all countries 
are interdependent and that even the North must depend on the 
South for prosperity. We are their market for goods as well as 
loans. Surely the prosperity of the South will lead to greater 
prosperity for the North. We asked only for an equitable share. 

But we have to acknowledge now that the New International 
Economic Order was a non starter. The developed countries turned 
it down flat. The laws of supply and demand, the marketplace, they 
say must prevail. We must not meddle with them through artificial 
policy decisions. 

But is it true that the laws of supply and demand determine 
the economy of the world ? Is protectionism a part of that law ? Is 
subsidy an integral part of the market-place ? How does a poor 
country compete when conditions are placed on aid; conditions not 
to buy from other sources, not to set up industries of a certain 
kind ? How do poor countries with no ability to subsidise exports 
compete with the rich ? How do we counter the practice of 
dumping excess goods at below cost ? 

We have tried to bring order to trade in commodities by 
elaborate Commodity Agreements and the operation of Stockpiles. 
But they have never really worked, despite the prohibitive cost. 
Many of us with pressing needs for funds, bypass the Agreement. 
Many others refuse to join. The recent massive glut has dealt a 



We 



We 






The South-South II Conference 97 




In the meantime direct and indirect military attacks and 
subversion of the developing countries continue. Colonialism is not 
dead. It has merely taken new forms. A weak and unstable 
Government is as good an excuse for military assaults as is a strong 
Government. Indeed all the Governments of developing countries 
are made out to be bumbling, incompetent and corrupt as if the 
North is totally free from these traits. 

The South African Government remains the most blatandy 
racialist regime in the history of the world. That it can exist in this 
day and age is due in part to the support it gets from its 
sympathisers in the North. People who are prepared to take direct 
military action against a Government for allegedly promoting 
terrorism, advocate gentle persuasion when dealing with the open 
terrorism practised by the South African Government. We do not 
expect the Pretoria regime to be bombed out of existence, because 
we do not believe in such a line of action. But when will those with 
the economic clout apply sanctions ? Or is it that African lives are 
cheap, and that investments in South Africa are so profitable ? 

The broad-based and multi-directional attack on us is no less 
serious because we cannot identify a single enemy state. It is no 
less devastating because we do not see armed and uniformed men 
invading our shores. We have won the right to govern our own 
countries but whether we are independent is another thing. 
Economically, of course, we have never been independent. We 
have no control over transport and insurance, marketing and prices 
and at times even over production. Our situation can only be 
described as deplorable. Before we can make it any better, we must 
prevent it from getting worse. 

The holding of this Conference on South-South Cooperation 
could not have come at a more opportune time. Looking back on 
the past three years since the first South-Conference was held in 
Beijing, we must all feel deeply conscious of the suffering and 
trauma experienced by practically every single country throughout 
the South during this period. The problem of plummetting prices 







The South-South II Conference 




figure. Yet now, de facto, the developing South is aiding the 
developed North by over 60 billion dollars a year. 

But what of the manufactured goods the South imports from 
the North ? One would think that with cheaper raw material inputs, 
the prices would go down. The fact is that it has not. The old 
escalating prices of manufactures remain and are aggravated by the 
appreciation of the currencies of the North against the South. The 
terms of trade have thus become worse and along with it the 
poverty of the South. It is ridiculous to suggest that the developing 
countries are now smiling because reduction in petroleum prices 
has brought relief. The fact is that reduction of crude prices by 65% 
has not resulted in the same degree of reduction in petroleum 
product prices. Other costs intervene and these costs are not due to 
the producers. 

At the very same time, we are bearing a heavier burden in 
servicing our debts. When the countries of Europe got together with 
Japan to solve the problem of excessive exports to the United 
States, they decided to revalue upwards their currencies. They 
succeeded, but their trade problems refused to go away. However, 
for the developing countries debt servicing has become more 
burdensome as their currencies depreciated against those of Europe 
and Japan and even against the US dollar. 

As devaluing the dollar has not decreased European and 
Japanese exports to the US, they are now investing more in the 
United States to get around United States protectionism. Thus the 
investment funds that could help develope the South have been 
diverted, leaving the South with only a trickle in capital inflow. It 
looks like the North has become an enlarged economic block, 
buying only cheap raw materials from the South, and dumping their 
excess of manufactured goods. The markets of the North are almost 
completely closed to manufactured products of the South. While 
the North continuously search for substitutes for the raw materials 
of the South, they also work to ensure a glut so as to bring down the 
prices of these materials. 






12- The South-South II Conference^*) 





We meet today at a time of severe adversity for the peoples of 
the South; economically, socially and politically. The undermining 
of the economies of our countries is unprecedented in scope. Here 
and there we see military assaults, either directly or through 
proxies. For some the fight for independence is not over yet. The 
blacks of South Africa are being hounded and hunted in order to 
sustain the most despicable system ever invented by man, 
apartheid. The indebtedness of the South is now legendary. They 
are weighed down by debt burdens which will subject them to all 
manner of manipulations and economic oppression for the 
forseeable future. The terms of trade get worse and worse with the 
passage of time, with seemingly no hope of ever getting alleviated. 

We meet indeed at a time of severe adversity for us, and it 
behoves us to bear this in mind all the time we discuss our 
problems and suggest solutions of them. 

Let us take firstly the economic situation of the South. We are 
by and large exporters of primary commodities. We hope that with 
the foreign exchange we earn, we could develope our countries and 
purchase the manufactured goods we need. 

But in the last few months there has been a total collapse of all 
commodity prices. An economic journal estimated that at prices 
prevailing three months ago, the developed countries would save 60 
billion dollars on the commodities they import. The figure must be 
more now as prices have plunged deeper. The aid given by 
developed countries to the South never came anywhere near this 



(*) A speech at the Opening of the South-South II Conference. Kuala Lumpur - 
05.05.1986. 




The South Commission 93 



The countries of the South being the primary intended 
beneficiaries of the work of the Commission, should be aware that 
the responsibility for the success and effective implementation of 
the findings of the Commission rests with ourselves. However, this 
must not be taken to mean that the South Commission should be 
perceived as autarchic or as a substitute for North-South economic 
relations. Rather, it should be considered as a complementary effort 
and strategy which would benefit the entire system of international 
economic relations. 

I cannot but stress that the work of the South Commission 
deserves the full support of the entire international community, 
particularly in this period of economic crisis which requires 
commitment and imagination to transform serious challenges into 
opportunities for development. The international community, in 
giving their support to the work of the Commission should 
therefore return to the spirit of the 60s and early 70s which 
witnessed considerable practical support for efforts at economic 
integration and cooperation among developing countries. 

In this respect, I fervently hope that the formation of the South 
Commission would make a valuable contribution towards the 
revitalization of North-South Cooperation by recommending a 
practical and meaningful agenda for negotiation. Such an approach, 
I believe, should strike a responsive chord among the developed 
countries of the North whose understanding and support would be 
essential. 

The South Commission is essentially an exercise in self-help. It 
is not too much an exaggeration to say that the eyes of the world, in 
both North and South, are upon the Commission. Let us 
demonstrate through the effective and successful implementation of 
the findings of the Commission that the countries of the South are 
capable of looking after themselves. 








92 The South Commission 



the solutions or approaches may seem imperfect, but it is 
worthwhile to remember that there are no perfect solutions. All 
approaches will yield good and bad results. What is significant is 
the balance between the two. An imperfect solution implemented is 
better than the perfect solution unimplemented. 

The idea of setting up in the South institutions of higher 
learning is one approach which can be implemented early. We 
already have numerous institutions in place in the developing 
countries. Indeed, they are already being utilised by many of us. 
What is needed is to identify suitable institutions which could then 
immediately take in students from the South, There is bound to be 
tremendous savings as the cost of education in developing countries 
is usually much lower than in developed countries. Additionally the 
foreign exchange will stay in the South. 

Mwalimu once maintained that ignorance about each other is 
one of the factors that impedes a closer and more dynamic 
cooperation among countries of the South. I agree entirely with 
him. We should therefore establish as many lines of communication 
as we can between developing countries. The news agencies of 
countries of the South should be linked to each other. Our 
newspapers, radios and television should give priority and place for 
news emanating from national sources or from agencies of the 
South. Reporting should be fair and should avoid sensationalism. 
International news should not be monopolised by the three or four 
dominant news agencies of the West. We should balance them 
against those of our agencies and leave it to the readers to judge. 

Apart from the news agencies, centres should be set-up in 
strategic parts of the world to collect and disseminate news of 
economic importance to the South. Contracts and demands for 
supplies of commodities and manufactured goods must be readily 
available from these centres. So must the national policies, laws 

and procedures required by countries and Governments in the 
South. 




Ji 





The South Commission 91 



established at a time when multilateralism is severely under attack 
and protectionism is rampant. It is established at a time when 
indebtedness of developing countries is paralysing their economies. 
In short, it is established at a time when developing countries of the 
South are faced with massive economic problems which threaten to 
nullify their independence, gained by some only recently at 
tremendous sacrifices. 

The establishment of the South Commission in itself is not 
meant to replace the efforts being undertaken by the countries of 
the South individually or groups to ameliorate their economic 
position. The attack against the problem must be multipronged. But 
the South Commission must constitute a major assault strategy 
which must receive the positive support of everyone. 

Although the task to be undertaken by the Commission is a 
daunting one, it should feel encouraged and inspired by the full 
backing and support which it has received from all the countries of 
the South. If we fail then we are going to suffer a severe setback, 
for it is unlikely that another concerted approach can be attempted 
for a very long, long time. 

Permit me at this juncture to unburden myself of some thoughts 
which the Commission might find useful. We have in the South 
many success stories and failures. These are usually more relevant 
than most analysis on how the developed countries achieved their 
present level of development. It would be very worthwhile for 
members of the Commission to be fully briefed by independents on 
the results of the many different policies and approaches adopted 
by the countries of the South since the end of World War II for 
example. In this exercise, we have to be absolutely honest with 
ourselves. 

Obviously some ideas or approaches can be implemented 
earlier than others. The longer we wait, the more complex and 
difficult the situation will be. Perhaps it would be worthwhile if the 
Commission can indicate certain measures which can be 
implemented even before the Commission's work is over. Perhaps, 







90 The South Commission 



Cooperation and its implementation mechanism was further 
expanded and refined through the adoption of the Arusha Plan of 
Action for collective self-reliance. 

Countries of the South were becoming more convinced of the 
need for closer cooperation among developing countries as a means 
of achieving economic and social advancement in addition to 
promoting a healthy and more equitable economic interaction with 
the advanced countries of the North, Efforts for further 
collaboration were further explored and intensified. Strongly 
committed to the ideal of South-South Cooperation, we 
congregated again in Caracas. The scope for South-South 
Cooperation was reviewed, expanded and fine-tuned to cover all 
major areas of fundamental economic cooperation. 

It is manifestly clear that for decades the countries of the South 
have seriously searched for some workable solutions. Nobody 
could accuse us of being idle and leaving the future of our nations 
passively to fate. We have broached the concept of cooperation 
among the South when our attempt for North-South Cooperation 
met responses too far short of our expectations. However, while 
everyone is agreed on the need, progress from that understanding to 
the taking of positive action has been much too slow. The setting up 
of the South Commission has taken us a while. Should the 
Commission fulfil its task, and I have no doubt that it will, the 
action that has to be taken to implement any recommendation is 
going to be even more time consuming and frustrating. We must 
therefore be prepared to soldier on and to overcome repeated 
failures and disappointments. The fact is that the obstacles are not 
going to be just the political will of the countries of the South. We 
are up against the traditional patterns of economy set by history. 

The South Commission has come into being at a most crucial 
time in the struggle of the developing countries for economic 
development and progress. It is established at a time when the 
search for solutions in our negotiations with the developed 
economies of the North has practically ground to a halt. It is 









" The South Commissions*^ 





The Commission is set up to study and propose practical 
solutions to the multifarious economic maladies confronting the 
countries of the South. This is by no means a simple task. For 
decades the countries of the South have been struggling to look for 
ways and means that would help them to eliminate the inequities 
and impediments which exist in the world economy. We have 
rallied together in our effort to redress the imbalance in the world's 
economic pattern through our call for the New International 
Economic Order, While it did initially stir some interest in the 
international community and secured a faint response from some 
countries of the North, nothing concrete has been achieved. And 
today, fifteen years after the call for the New International 
Economic Order was made, we continue to find ourselves 
enmeshed inextricably in external debts, frustrated by extensive and 
growing protectionism, bedevilled by fluctuations of commodity 
prices in favour of the developed countries of the North, and tossed 
about by volatile interest and exchange rates. 

Against the backdrop of a devastating economic recession, a 
future which holds no prospect for improvement and against 
negative responses to the call for a New International Economic 
Order, the countries of the South began to look at each other, in 
search of potential complimentarities in our own economies. This 
awareness motivated the spirit for closer cooperation among 
countries of the South. Hence we met in Mexico City nearly twelve 
years ago to chart the first programme for economic cooperation 
among the developing countries. The scope for South-South 



(*) A speech at the Second Meeting of the South Commission. Kuala Lumpur. 
01.03.1988. 






88 Consultation and Cooperation 



We need not have anything elaborate. We can have minimal 
staffing with an austere budget. But even this is better than having 
none* If we are going to act positively as a result of this conference, 
certainly a Secretariat of some kind is necessary. Malaysia wishes 
to propose and will support the setting up of such a Secretariat. I 
hope the other countries of the South will support this proposal. 

The NAM started really because of a political need for a third 
force when the world was divided into two blocs, the East and the 
West, It has done well, for despite the manipulations and the proxy 
wars, we have survived; indeed we have grown in number. 

But the world has changed. East and West division has almost 
completely disappeared. Politics and its related military postures 
are no longer as important. Economic matters now dominate and 
everyone is concerned with giving their people a better life, 
materially certainly and in some cases spiritually. 

NAM, the Group of 77 and other organisations of the South 
have therefore to take stock of their role. We too must change. 
Ideologies should no longer occupy out time. Admittedly there are 
still many who have to be liberated from the oppression of alien 
domination. We will continue to support their struggles. But we 
must now turn our eyes to the well-being of our people. 

It is not impossible for the poor to become rich. We have seen 
how some countries have pulled themselves up literally by their 
bootstraps. If they can, others too can. The time span may vary but 
it would be defeatist to assume that some are just incapable of 
developing. 

We must continue our dialogue with the North. We must solve 
our debt problems and the deteriorating terms of trade. We must 
together strive for fair trade. But above all we must create new 
approaches to enable the South to benefit from the wealth of the 
South. We must learn from each other. We must help each other. 
And we must stand together when faced with common problems. 





Consultation and Cooperation 87 

When the first commercial flight was inaugurated between 
Malaysia and Europe one could count on one's fingers the number 
of travellers flying between these two places. Today, every single 
day huge Boeing 747s fly thousands of passengers between Kuala 
Lumpur and Europe. Would this route be lucrative if no start was 
made ? Is it not true that because there are flights there are 
passengers ? In fact in the world of the hard sell, nothing that we 
market would remain unsold for long. 

The Southern Routes between the countries of the South must 
be studied and initiated. It is important for trade and commerce. It 
is important and wll be profitable in itself. Let us look at all our 
communication potentials and let us take the risk. Let us spread the 
risk between those who can afford. Let us begin. 

In August 1986 a group of people from the countries of the 
South met in Kuala Lumpur and decided to set up a South 
Commission. The setting up of this Commission under the 
Chairmanship of Mwalimu Julius Nyerere was hailed by the NAM 
meeting in Harare in September of the same year. The Commission 
has now finished its work and we must congratulate the members of 
the Commission for the report they have submitted. It has not been 
easy considering the financial and other constraints under which 
they worked. 

I do not wish to discuss the recommendations of the 
Commission here. But what is important is that we should not allow 
it to be yet another academic exercise. We may disagree on the 
substance or we may agree. What is important is that we must act; 
we must set in motion the processes which will make this wholly 
Southern effort worthwhile and productive. 

In this connection I would like to mention the setting up of a 
Secretariat of the South. The North is well equipped to deal with all 
eventualities and they are going to be even better organised. We in 
the South have nothing even remotely equivalent to the OECD 
countries. With the emphasis now on the North-South divide rather 
than the East- West divide, the need for a more formal coordination 
of the South is even greater. 




I 





86 Consultation and Cooperation 



centuries. Just one trading company in the North would have 
sufficient outposts to cover the whole world. They need not even 
trade with other companies* They are capable of trading between 
their own branches and yet be conducting international trade. 

But the nations of the South are practically all quite ignorant of 
the tremendous trade opportunities that have been exploited by the 
traders of the North, To keep informed and knowledgeable requires 
massive investments in men and money. And none of the 
developing nations of the South on their own can spare the men or 
the money. 

It is for this reason that Malaysia proposes the seting up of a 
Trade Information Network and a South Investment Data Exchange 
Centre to service the South. We need to know what is happening 
and what is available in the South to foster economic relations 
between us. How often have we purchased goods from the North 
when such goods are available in the South at probably more 
reasonable prices. Indeed it is most probable that we can find 
markets in the South in addition to the markets in the North, thus 
increasing our trade volume. 

We live in the Information age. If time means money, so does 
information. Yet we have no information about each other. Our 
huge markets and our resources in material and goods are denied us 
because we are simply not aware of the potentials and the 
opportunities. 




distinguished 



meant 



roundabout 



We 



between us. The same 



the communication systems. Everything goes North before going 
South, resulting in increased costs, inefficiency and inconvenience. 
This prevents economic, trade and cultural exchanges from 
developing. 

Of course, if there is no traffic it will not be economical to have 
direct connections. But is it true that it is totally uneconomic ? 




Consultation and Cooperation 85 




We in the South must wish them well. We would like them to 
succeed. However, will aid and loans and investment funds be 
diverted from us in order to help them, or will additional and 
separate funds be made available to them. We worry despite the 
repeated assurances and gain I think we have reasons to worry. 

There is a question that we need to ask the Group of 7. When a 
few developing countries in East Asia made economic progress 
they were categorized as Newly Industrialising Countries and their 
further growth inhibited by the imposition of various restrictions. 
Will the countries of Eastern Europe be similarly labelled and 
similarly restricted if they achieve the level of growth of the so- 
called Asian NICs ? I hope this question is not censored. I hope we 
get an answer. 

This conference will fail if we of the South do not address 
those problems which lend themselves to solutions based on our 
own efforts. We cannot really expect others to solve our problems 
to their own detriment. At best they will only help on a basis of 
enlightened self-interest. 

There are many things we can do for ourselves. Most of these 
would be economic in character. It is not for us to involve ourselves 
in the political systems of each other. 

Firstly, the developing South constitute a huge market which at 
the moment is accessible largely to the developed countries. There 
is no doubt that there are very good reasons for this being so. But 
there is no reason why we cannot restructure our markets. We will 
continue to be markets for the North, but we can at the same time 
develop our economic cooperation and trade with each other. 

To do this we need to learn more about each other's needs, the 
laws and regulations, the systems of imports and distribution, 
financial and currency matters and a host of other things. 

The advanced trading nations of the North are knowledgeable 
about these things simply because their private companies and 
public agencies have been in this business for decades and even 






84 Consultation and Cooperation 



For the liberal democrats, chaos, instability and retarded 
economic growth with the accompanying massive and debilitating 
poverty among their democratic converts are a small price for these 
people to pay for liberalism of democracy. Indeed murder and 
assassinations of citizens are regarded as much more acceptable 
than any Governmental action to prevent isntability. Sanctions and 
trade restrictions and vicious campaigns that impoverish the already 
poor are the weapons they use to force their liberal democratic 
ideas on those they deem not measuring up to their standards. The 
methods differ little from the subversive strategy of Communist 
proselytisers. 

We admit that generally the Governments of the West are not 
involved. But pressure groups or the Non-Governmental 
Organisations set up by their citizens are so powerful and 
financially so strong, that it is usually beyond the capacity of most 
of the countries of the South to resist or to counter. In addition they 
have access amounting to control of the international media; access 
which is almost totally denied their victims. By threatening the 
exports of developing countries they can exert powerful influnce to 
foist their democratic norms on others. In fact, it amounts to 
imperialism by other means. And like imperialisms in the past, the 
subject nations languish and suffer without any means of redress. 

The peoples of Eastern Europe and the Russian republics have 
now discarded centralised power and planning in favour of liberal 
democracy. We hope they will not be disillusioned. Merely being 
democratic will not save them from the poverty created by their 
former centrally planned economies. Political stability in a 
democracy requires a high degree of sophistication among the 
people. In other words, the people will have to restrain their 
exercise of democratic freedom if they are to benefit from 
democracy. We hope that the people of Eastern Europe will learn 
quickly. Their prosperity can contribute to the common wealth of 
nations. 







Consultation and Cooperation 83 

There are, of course, many other problems of the South which 
directly involve their dealings with the North. We are not simply 
shifting blame, but the fact is that without cooperation and 
understanding of the North we cannot resolve these South 
problems. 

We see a coalescing of the North American nations, a union of 
the West European nations and now, around a united Germany, all 
the European countries of the West and the East will gather 
together. And then there are those Soviet republics which believe in 
a common European homeland identifying more and more with the 
new European grouping. All these changes have great significance 
for the future of the world. There is indeed a wind of change which 
leaves no part of the world untouched. Fortunately almost all the 
changes taking place are for the good of the human race. 

We should rejoice that the expensive Cold War is about over. 
But will peace between East and West mean peace and prosperity 
in the South as well ? In the past if one bloc threatened any one of 
us, the other bloc almost automatically moved to counterbalance 
the threat. In the process the threat was neutralised* But what will 
happen now if any power in the honeymooning East and West, or 
worse still if the united East and West threatens us ? Will the old 
balance of power manoeuvers save us from total domination ? With 
some powerful nations applying their laws extraterritorially without 
even a whimper from their former adversaries, don't we have reason 
to be worried ? 

We welcome the universal espousal of the democratic system. 
But there is a fear that democracy has become the kind of religion 
that communism became. A system devised to free people and 
permit them to decide their own destiny is becoming a system that 
is worshipped for itself. Democracy is no longer a means to an end 
hiif has become an end in itself. Liberal democrats in the West have 




There 



Woe 



democratic 





82 Consultation and Cooperation 




If we blame the North for some of our problems it is not 
because we are incapable of recognising our own faults. The simple 
fact is that most of our problems arise from our relations with the 
North. Our problems cannot be because of South-South interaction 
since we really have very little to do with each other. If there are 
South-South problems, they are between neighbours. Even here 
we often see the hands of the North. How often have we seen the 
same country supplying arms to both sides whenever there is a war. 
A classic case is the Iran-Iraq war. 

The massive debt problems of the South is also not because the 
South purposely wanted to borrow and not pay. We borrowed at a 
time of worldwide economic prosperity when the lenders 
themselves fully believed in our capacity to repay. The worldwide 
recession that followed and the effective devaluation of our 
currencies were not of our making. Lenders must be prepared to 
accept the risks of lending and to devise workable solutions, and if 
all else fails, to accept losses. In their commercial loans within their 
own countries they make provisions including write-offs when 
loans go bad. Similarly they must accept the need to make 
adjustments and work out schemes when their sovereign loans go 
bad. Nations cannot be bankrupted in the same way companies or 
individuals are bankrupted. You cannot tell a people to live at 
subsistence level until they pay off their debts. Bankrupts can die, 
nations cannot. We cannot make debt-slaves of nations, not in this 
so-called enlightened age. 

Then there is the Palestinian problem. When all other problems 
of oppression by Governments, real and imagined, have been given 
due attention and pressure exerted by those capable of applying 
pressure, the Palestinian problem remains unresolved. It is so 
because a repressive regime that systematically and openly carries 
out a campaign of terror against people in territories which it 
occupies illegally is not condemned the way less repressive regimes 
are condemned. Certainly economic sanctions and withdrawal of 
preferences have never been contemplated. And so Israeli 



intransigence continues. 







10- South-South Consultation and Cooperation^*^ 





The decision to form the Group of 15, or G 15 as some would 
call it, was announced in Belgrade in September 1989. Heads of 
State and Government of like-minded countries attending the 
Non-Aligned Sununit decided that a group of fifteen developing 
countries should sit in conference to discuss and find solutions to 
the problems besetting us in the South. Contrary to what some 
quarters may think, the G 15 was not formed as a counter to the 
Group of 7 industrialised countries of the North. I wish to stress 
here, lest our gathering here is misunderstood by others, that we are 
not self-appointed arbiters and regulators of the world's economic 
affairs, neither are we conspirators against the North. Rather we 
have come together to consult, to exchange views and to explore 
the potential, which is largely untapped, for South-South 
cooperation. We would also like as a Group to foster dialogue with 
the North, the absence of which has caused the economic gap 
between North and South to widen further, since the first North- 
South dialogue failed. 

We fully realise that we are weak and we are very dependent 
on the North. But we do hope that we will be allowed to speak 
freely, for we feel that there should be democracy not only within 
nations but also between nations. To castigate us and to twist our 
arms because we exercise the much touted freedom of expression is 
to deny democracy in the relationship between peoples and nations. 
To deny us our views by deliberately censoring them by whatever 
means, is to make a mockery of the freedom of the press about 
which we hear so much. 



(*) A speech at the First Meeting of the Heads of State and Governments of the Summit 
Level Group for South-South Consultation and Cooperation. Kuala Lumpur - 
01.06.1990. 






IV. THE SOUTH-SOUTH 

RELATIONS 






78 Investment in Malaysia 



your plans but you would revise them upwards. More, I expect you 
will inform your business friends about little-known Malaysia, 

The more prosperous Malaysia gets the better it is for everyone. 
Malaysians have a voracious appetite for foreign goods. That 




appetite can only be satisfied if we have the income to pay for 
them. In a way when you invest in Malaysia you are helping 
American workers whose products we can then afford to buy. The 
electronics industry illustrates this well. We produce the chips in 
American owned factories in Malaysia and they eventually end up 
in American-made computers which we buy at a fantastic rate so 
that Malaysia is now the third biggest user of computers in the 
whole of Asia. It is short-sighted for some quarters to say that 
Americans should invest at home only. Indeed it is short-sighted to 
say that America should restrict imports. If you deprive other 
countries of their foreign exchange earnings, how do they buy the 
products that you must export, however big your domestic market 
may be ? How do they pay their debts to American bankers ? 

The world is getting more and more interdependent. Even in 
Malaysia we realise that to sell palm oil to India, we must be 
prepared to import some Indian produce. We can produce most of 
these imports ourselves. But then we will have nothing to buy from 
our customers, and they in turn will have less money to buy our 
palm oil, etc. 

No country is an island. We cannot but be a part of the world 
economic system. We have to trade with each other and we have to 
have a certain amount of division of labour. If we do everything 
ourselves and hope others will buy what we produce, then there 
will be balance of payment problems, restrictions and currency 
instability. None of these things is good for anyone. 

And so, when you take the first step toward investing in 
Malaysia, you are not just doing us a favour but you are doing 
yourselves and the US a favour. In terms of total US trade and 
industry, what you put in may be half a drop in the ocean. But little 

go a long way — even in business. 






Investment in Malaysia 77 




Secondly, a company which sells 50% or more of 
its production to companies in the Free Trade Zone 
(FTZ) or Licenced Manufacturing Warehouse (LMW) 
is permitted to have whatever level of foreign equity up 
to 100%. 

Thirdly, a company which employs 350 fulltime 
Malaysian workers is permitted to hold whatever level 
of equity it applies for. 

Fourthly, where foreign equity is less than 100%, 
the balance to be taken up by Malaysians should 
conform to the New Economic Policy rulings. Such 
rules will be applied without undue rigidity. 

Fifthly, employment of Malaysians at all levels 
should reflect approximately the racial proportion of the 
country. 

Lastly, any company with foreign paid-up capital of 
US$ 2 million will be automatically allowed five 
expatriate posts at whatever level. Changes of personnel 
will not require fresh work permits. Visas will be given 
automatically during the first ten years of the 
investment period. Additional expatriate posts will be 
given when necessary upon request. 

These regulations have been formulated because we in 
Malaysia are pragmatic. The world is going through a bad period. 
Our commodities are not fetching the prices we expect. Growth 
which has long been taken for granted in Malaysia is not taking 
place. There is unemployment. Our emphasis now is on wealth 
creation rather than wealth distribution. We are sure we can mange 
our social engineering when the economy recovers. But it will not 
be at the expense of those who come when they are most needed. 

When the American Investment Group and MIDA first 
contacted you, investment conditions in Malaysia were still 
comparatively restrictive. Now that we have relaxed these 
conditions further, I expect that you would not only go ahead with 






76 Investment in Malaysia 




negotiations to the barest minimum. Conditions that you will have 
to meet in order for you to get the level of equity you want will be 
clearly spelt out in these regulations. You can then decide for 
yourselves whether you want 100% ownership or 51% or minority 
participation and then choose the kind of industry you can go in, the 
capital required and the jobs you have to create. If your equity 
matches the conditions, you should get your approval within a 
given period of time. If there are delays you can appeal to higher 
authority. If the delays become a regular affair then there must be 




either something with our conditions or something wrong with the 
Department or officers you are dealing with. In both cases action 
will be taken, pleasant or unpleasant. 

One area that has been very vexatious to foreign investors is the 
number of expatriates allowed. Long haggling over key personnel 
have soured relations between investors and the Government. On 
the top of it the expats are given limited visas and these visas may 
have to be renewed by going abroad first in order to break your stay 
in the country. 

When I was in New York last week, I had taken the opportunity 
to announce new conditions for foreign equity and expatriate staff. 
These new conditions are applicable to new foreign ivnestments in 
industries whose products will not compete with products presently 
being manufactured locally for the domestic market. They also 
apply to expansions of foreign-owned or partly foreign-owned 
industries which do not compete against existing local industries. 
These new rules apply only to investments during the period 
between October 1st. 1986 and December 1990. Investments during 
this period will not be required to restructure their equity at any 
time. 

As you might have read in the local papers, basically these are 
the new conditions : 

Firstly, a company that exports 50% or more of its 
production is permitted to have up to 100% foeign 
equity. 




Investment in Malaysia 75 





engine of growth in our economic development. This key role was 
acknowledged ever since independence in 1957 and this was 
concretised in 1967 when the Malaysian Industrial Development 
Authority (MIDA), a government agency, was formally set up 
tasked with promoting and coordinating industrial development in 
the country. Today, MIDA stands ready to assist you in every way 
possible for the realization of your industrial projects in Malaysia. 

In this seminar, you will be informed of a number of messures 

taken by the Government to provide an even more positive and 
conducive environment for investment in Malaysia. In May this 
year, the new Promotion of Investments Act (PIA) was passed by 
the Malaysian Parliament, providing attractive tax incentives for the 
manufacturing, agriculture and tourism sectors. Besides these, the 
Government had launched the New Investment Fund (NIF) to 
channel funds at preferential rates of interest for the financing of 
new productive capacity in manufacturing, agriculture and tourism. 

The Malaysian Government believes that it must work closely 
with the private sector in order to facilitate business. We have 
coined the term Malaysia Incorporated to describe this close 
relations. Admittedly it is not very original but it has helped the 
bureaucracy and the business community to change their attitudes 
toward each other. You can invoke this concept should you find 
problems in dealing with the bureaucrats. 

Apart from this we are trying our level best to deregulate. Of 
course it is not possible to do away with regulations altogether. 
That can lead to chaos and losses for everyone, including the 
investors. You need the protection afforded by some well thought 
out regulations. But we will try our best to do away with 
unnecessary bureaucratic processes and regulations. For this we 
need continuous feed backs from you, indeed even before you 
invest. 

It is paradoxical that in order to deregulate we have to 
propose new regulations. But I am sure you will like these 
regulations because they are intended to reduce investor-official 






74 Investment in Malaysia 



devices, room air-conditioners, and natural rubber products, 
especially latex gloves and catheters. Through the next decade, we 
intend to further accelerate the development of other industries 
utilizing our natural resources of rubber, timber, palm oil, tin, clay 



and silica. 

We hope, in the near future, to be a leading exporter of items 
such as tyres, precision and industrial rubber products, wood 
mouldings and furniture. You may call this wishful thinking on the 
part of a small nation. However, one hundred years ago, many must 
have also called it wishful thinking when Malaysia or rather, 
Malaya, as it was then called, harboured dreams of becoming a 
world leader in rubber and palm oil exports. About one hundred 
years ago, the first rubber seedlings from Brazil and the first palm 
oil seedling from Africa were brought into Malaya to be cultivated. 
Today, these feats belong to the annals of history. Malaysia is now 
the world's largest producer and exporter of natural rubber and 
palm oil 

For the next decade, Malaysia's development emphasis will be 
on export oriented industrialization, accelerating growth in priority 
industries selected on the basis of world comparative advantage, 
manpower development, and the acquiring of certain technological 
capabilities. Indeed, we refuse to be grounded in the mediocrity of 
mere assembly operations. We want our Malaysian workforce to 
improve their skills for we believe that our future lies in the greater 
value-added secondary and tertiary processing of our raw materials 
and in higher technology industries. 

Although our aspirations may appear immodest, we are 
modest enough to recognise that we cannot achieve all these by 
ourselves. We recognise the need for capital investments, 
technological capability, management know-how and entree into 
world markets. For these, we need foreign investors such as 
yourselves. 

The Government and the people of Malaysia have always 
recognised the key role that foreign investments must play as the 



mmm 




Investment in Malaysia 73 



Malay 




growth, create employment, and generate income. The major 
impetus for Malaysia's rapid growth over the last decade was the 
export of her natural resources, such as rubber, timber, palm oil, tin 
and also petroleum. Together they account for more than seventy 
percent of our exports. The share of manufactured exports exceeded 
the twenty percent level only after 1980. Today, it is no longer a 
question of "to industrialize or not to industrialize". Malaysia's 
track record of economic progress based on her primary 
commodities, and a successful import substitution and export 
oriented industrialisation programme, is being emulated by other 
developing countries who now have the advantage of cheaper and 
more abundant labour. Malaysia's advantage has been maintained 
by the efficiency, productivity and quality of our workforce and our 
overall conducive industrial environment. However, in a matter of a 
decade or even sooner, these countries will be catching up with 
Malaysia. In other words, Malaysia has to turn her attention to 
increasing the sophistication of her industrial environment or else 
be left behind. 

The performance of our manufacturing sector during the 
Fourth Malaysia Plan period, 1981-85, was encouraging. It 
demonstrated its relative maturity with a steady share in Gross 
Domestic Product (GDP) of between nineteen to twenty percent 
throughout that period, while the value of manufactured exports 
almost doubled from US$ 2,4 billion in 1980 to US$ 4.7 billion in 
1985. Under the current Fifth Malaysian Plan, i.e. 1986 to 1990, the 
manufacturing sector is projected to contribute 20.5 percent to GDP 
by 1990 while the share of agriculture is expected to shrink from its 
present 20.3 percent to 18.1 percent. From this, you can see that 
Malaysia is surely and steadily heading towards her goal of joining 
the breed of Newly Industrialized Countries (NICs), all striving for 
their legitimate share of the world's economic wealth. 

You may be unaware of it, but Malaysia has indeed proven 
herself as a viable base for export industries. Today, Malaysia is a 
leading exporter of manufactured goods such as semi-conductor 







72 Investment in Malaysia 




Newspeople do not like countries that are calm and peaceful and 
attain economic growth as a matter of course. Politically too there 
is not much to report about Malaysia. Since Independence in 1957 
it has been ruled by coalition Governments which, despite frequent 
admission of new members, keep and practise consistent policies, 
particularly towards foreign investors. Recently as you know the 
same coalition won with a 4/5 majority, which also means a 
mandate to continue with well-tried policies. Like Holiday Inn, no 
surprises. No sudden 180" or even 90** turns. 

Yet these very qualities which are so irritating to newsman 
looking for newsworthy media events should be attractive to 
investors, particularly foreign investors. You will be dealing with 
the same people with well-known curriculum vitae. There may be 
bad characteristics, but you know them, and as good businessmen 
you will know how to handle them. Malaysia and Malaysians are 
predictable. Dull, perhaps, but better than dealing with mercurial 
people. Even bureaucratic delays and regular assurances to do away 
with red tapes are predictable. All you need to do is to make 
allowances for these delays and you will achieve your target right 
on the dot. 

The Malaysian problem is how to overcome this anonymity. 
We are competing with ASEAN neighbours all of whom are 
well-known. Who has not heard of Singapore or Indonesia or 
Thailand or the Phillippines ? Only Brunei is perhaps less known 
than Malaysia but that is being remedied. But Malaysia still 
conjures up a blank. People still say, "Malaysia ! Now where on 
earth is that ?" Obviously you cannot invest in a place you don't 
even know the location of, or where it exists. We are busy 
remedying all these shortcomings. But we don't intend to attract 
attention by being unstable or upredictable. If you haven't known 
Malaysia, not likely with AIA doing such a good job, I hope you 
will learn much about this country on this occasion. We are sure 
you will love it for the Tourist Development Corporation insists 
that "To know Malaysia is to Love Malaysia", 







9- Investment in Malaysia^*^ 




The United States is one of the top five major investors in 
Malaysia but your total involvement is comparatively small. It is 
certainly not commensurate with your status as the biggest 
economy in the world. According to the latest survey of 
manufacturing companies in production, US investments in 
Malaysia's manufacturing sector totalled a mere US$ 128 million in 
terms of paid-up capital and US$ 358 million in terms of fixed 
assets. Yet the annual exports from US to Malaysia amount to 
4676.4 million ringgit. Clearly you are getting maximum benefit 
from your relatively small investments. That in itself should 
stimulate you to invest more. 

There may be many reasons to explain this relatively low 
profile of US investments in Malaysia; low, with the exception of 
the electronics industry. One of the reasons could be that Malaysia 
is a new country that came into being without the usual big bang. 
Until 1963 we were known as Malaya. Indeed some American 
writers still refer to us as Malaya. For us it is logical to rename the 
country Malaysia when the states of Sarawak, Sabah and Singapore 
joined the federation. But may be it is not so logical to distant 
foreigners. After all Himalaya is in India. Couldn't Malaysia be 
somewhere between China and India, or Africa which has Malawi 

and Mali. 

We came into the world so quietly that nobody noticed. There 
was no protracted war of national liberation or East- West proxy 
fiffht PAnQ<»nnftntlv wft rannot even he notorious like Vietnam. 



(*) A speech at the American International Group Investment Seminar. Kuala Lumpur, 



06.10.1986. 





70 Malaysian- Arab Trade and Investment 



the nation. Indeed, comparison of trade figures, GNP and per capita 
income would indicate that in terms of economic performance we 
are almost as big as our giant neighbours. Also, when you do look 
at Malaysia, you must look at it from the perspective of ASEAN 
and that the 16 million base population of Malaysia gives you 
access to the markets of the ASEAN nations with 270 million 
inhabitants. Various schemes have been formulated and are being 
formulated by the Governments of ASEAN to enable investors to 
take advantage of the market strength that ASEAN affords. Arab 
investors should seriously look at this aspect of investments in this 
region when considering Malaysia as your base for investments. 

The global economic situation and the uncertainties and 
conflicts that have arisen in various parts of the world call for very 
pragmatic approaches towards investments and the need to 
diversify one's investments. To date it appears that most of the Arab 



Malaysia 



and 



prospects 



your ventures here will be equally, if not more, profitable than your 
investments in other nations . 

The Malysian Government will assist you in every way 
possible to ensure the success of your projects in this country. Our 
continued interest in trade and investments with Arab nations is 
underlined not merely by this Conference, but by the very 
pro-active attitude we continue to take to reach out and to expose 
Arab investors to the opportunities that Malaysia offers. 







Malaysian-Arab Trade and Investment 69 




When you plan to invest in any country, I am sure that, among 
your critical concerns, would be the political stability and economic 
strength of the nation and the policies that the Government follows 
to encourage and protect the rights of foreign investors. In this 
regard the history of this country and our track record in the 
practice of Parliamentary Democracy is your best assurance of the 
political stability of this nation. In addition, the economic strength 
of this nation is founded on the strength of our world pre-eminence 
in the export of commodities such as rubber, tin, palm oil, 
hardwood timber and pepper. Our petroleum industry has also 
helped, though this is but a fraction of those in the Arab nations. 
The recent successes that we have engendered in the 
manufacturings ector, that has made Malaysia today among the 
world leaders in the exports of electronic semi-conductors, room 
air-conditioners, rubber gloves, swimming caps, catheters and 
refined palm oil, are all assurances to you of the basic soundness 
and strength of the Malaysian investment environment. 

The policies of the Government in respect of foreign 
investments are very clearly defined. However, I would like to 
stress that we welcome Arab investors to hold majority or even 
100% foreign ownership in projects that fall within our guidelines. 
For joint venture projects, you will find no shortage of the 
Malaysian parties eager to talk to you. As the equity guidelines 
have been well accepted by investors from other nations, I am sure 
that you will find these policies equally agreeable. The Government 
has also allowed for foreign ownership of land in this country and 
this policy may encourage you to take advantage of the vast 
opportunities in agricultural development in this country. Indeed, 
there are many real-estate projects already completed which are 
worth acquiring as the property market is expected to improve 
soon. 

When you look at Malaysia, you may perceive the 16 million 
population of this country as relatively small compared to the other 
countries in this region. However, the population figures for this 
country does not by any means measure the purchasing power of 







68 Malaysian-Arab Trade and Investment 



and I hope that this Conference will reveal to all of you the 
prospects for profits that can be made in Malaysia, 

The investment opportunities in Malaysia will be explained to 
you by various speakers in this Conference. You will be told that 
opportunities in Malaysia lie not only in manufacturing, but also in 
agricultural and agro-based projects, in the various government 
plans for privatisation and that joint venture partners can be both 
from the private sector as well as semi-government organisations 
authorised to undertake private sector investments. 

We appreciate that Arab investors may not have the 
technological expertise or export marketing contacts for some of 
the projects that malaysia wishes to promote. It is in this context 
that we envisage that projects that are to be formed as 
Malaysian-Arab joint ventures may have to have third party inputs 
of technology, export marketing contacts and even perhaps capital. 
However, we realize that as investors your contacts are world-wide 
and you have access to the necessary foreign technology and 



Malaysian 



element together with your investments. 



party 



I have been told that it is often the practice among Arab 



investment 



ventures and to either buy over the company, or to form a joint 
venture with such enterprises. This appears to have been the 



West 



takeovers 



Arab investors helping this nation in enlarging the total economic 

cake with the establishment of new projects. Most of the foreign 

investments in Malaysia, be it from America, Europe, Japan or 

elsewhere, have been of the nature of new enterprises. These 

projects have also garnered handsome profits for the investors. I 

hope that Arab investors will also pursue this particular pattern of 

investments, so as not to miss out on the opportunities that others 
are already reaping. 






8- Malaysian- Arab Trade and Investment^*) 





I particularly welcome the holding of this Malaysian-Arab 
Trade and Investment Conference because Arab nations are perhaps 
among the few capital-exporting countries that have not been 
exposed to the investment opportunities that Malaysia has to offer. 
Over the last two years we have had investment conferences in 
Malaysia for Germans, Japanese, Scandinavians, British, and 
others. It is thus most befitting that such a Conference for one of 
the most significant groups of capital-exporting nations in the world 
be also held in Malaysia. 

Malaysia at one time looked towards Arab nations with 
considerable amount of anticipation for inflow of investment funds 
into private sector projects. The Malaysian Industrial Development 
Authority or MIDA, the government agency responsible for 
investment promotion, even set up an office in the Middle East to 
promote Arab investments into Malaysia. However, since at that 
time, Arab investment interests were focussed towards the West, 
there was little response to MIDA's efforts to attract Arab investors. 
The MIDA office was consequently closed. 

To date Arab investments in the manufacturing sector total 
only about $43 million ringgit and you will admit, it does not in any 
way reflect the true strength of the Arab investment potential. There 
are, of course, Arab investments in various Malaysian plantations 
and trading companies which are quite significant. 

Many investors from numerous countries have found Malaysia 
to be a very hospitable and profitable environment for their projects 



(*) A speech at the Mai ay si an- Arab Trade and Investment Conference. Kuala Lumpur, 
10.11.1987. 





66 With American Businessmen 



The industrialisation programme of Malaysia cannot be carried 
out by Malaysians alone. We still lack the know-how and even the 
entrepreneurial skill. We accept and welcome foreign participation. 
We can really help to make you and your products even more 
competitive. We do hope that along with some of your selling 
missions should come investors as well, ready to participate in our 
industrialisation. 




We 



examming 



also other countries, both developed and developing, before a final 
investment decision is made. We are also aware that critical 
parameters for any investment decision other than the technical 
viability of the project, would be factors such as political stability, 
economic strength, the policies and predictability of the 
Government affecting foreign investments, infrastructure, banking 
and finance, the local business environment and the quality of life 
that the country offers. I believe you will find that Malaysia 

provides all these ingredients. 







With American Businessmen 65 



Japanese market is opening up rapidly and manufacturing in 



make 



market. 



I would also like to touch briefly on some aspects of our 
investment policies that could have a bearing on your investment 
decisions. In respect of equity, you can have up to 100% if you 
manufacture for export. We are very liberal with expatriate staff 
although we would advise you to use qualified Malaysian staff in 
order to reduce cost. Some American manufacturing companies are 
headed by Malaysians and have exclusively Malaysian executives. 
And they have done very well. But the choice is largely yours. As 
regards the movements of funds, there has been no restriction. You 
can take your profits and capital out any time you want. If there is 
any form-filling involved, it is only for statistical purposes. 

The Government's policies that have taken cognizance of the 
needs of foreign investors, are those that have helped to create the 
investment environment that we have today in Malaysia. Those 
companies that have invested and are operating in Malaysia can 
attest to Malaysia's economic strength and healthy investment 
climate, 

Malaysia is a multi-racial and multi-religious nation. The 
harmony of our nation depends upon all the communities working 
together in friendship and understanding for the common good. 
This is happening in Malaysia. Malaysia is known for its racial and 
religious tolerance. Malaysians fully realise the importance of 
unity, racial harmony and religious tolerance. Malaysia's progress, 
prosperity and, indeed, survival depend on them. We cannot afford 
to have demagogues preaching racial hatred and religious 
intolerance. It is better to act against them before, than after they 
succeed in igniting religious or racial riots and disorderliness. 
Preventive detention is abominable but if democracy is to survive, 
it must be protected from irresponsible opportunists. 






64 With American Businessmen 



Whereas we see privatisation as providing a strong impulse for 
growth, we nevertheless see the future of Malaysia basically as an 
economy that is based on the production and export of increasingly 
more sophisticated goods which will require continuous inputs 
from foreign investors. One area is the processing of our raw 
materials into finished or semi-finished products before they are 
exported. Malaysia, as you all know, is among the world leaders in 
the export of raw materials such as rubber, palm oil, tin, hardwood 
timber, gas and crude oil. We also export cocoa and a range of 
other mineral and non-mineral products* Our attempts to move 
Malaysia from being merely an exporter of primary raw materials, 
to an exporter of finished or semi-finished products have already 

met with some success. However, considering the quantum of raw 
commities produced by Malaysia, we feel that we are still 
scratching the surface of the potential in this area. 

In addition to our raw materials we have an abundance of 
well-educated, easily trainable pool of workers and managers. 
While wages are not as low as those in some neighbouring 
countries, this is balanced by the good infrastructure and services 
obtainable in Malaysia. Roads, telecommunications, ports and 
airports, power, etc are comparable to those in developed countries. 
It is for this reason that we are now coming close to be the biggest 
exporters of microchips and room airconditioners in the world. We 
are also very big in the manufacture and export of a variety of 
domestic appliances. 

Malaysia's combination of raw materials, manpower, energy, 
infrastructure, realistic government policies and attractive 
incentives provide investors from the West an Eastern base from 
which to launch the export drive into the lucrative markets of the 
Pacific Rim. Most certainly, Malaysia presents you with a 
springboard to the ASEAN market and also to Japan and China. 
The fact that Japanese companies, driven out of Japan by the rising 
Yen and other costs, are now coming to Malaysia to manufacture 
their products to be exported back to Japan, is testimony to the 
strength of the Malaysian environment. I need not tell youthat the 









With American Businessmen 63 




Malaysia's strategy of export-led growth, in which American 
companies are playing an important role, is continuing to pay 
dividends and strong exports indicate that output growth for the 
manufacturing sector will accelerate to reach 14%. The sheer 
magnitude of export earnings brought about by strong 
performances in both commodity exports and exports of 
manufactured products has allowed the economy to enjoy a 
substantial current surplus in the balance of payment of about M$6 
billion (US$ 2.3 billion). And this is achieved despite substantial 
growth of imports. 

Since independence the Malaysian bureaucracy had grown 
rapidly. Much of this is due to the formation of statutory authorities 
and Government business enterprises. This huge bureaucratic 
machinery has been a burden to the nation. Accordingly we have 
decided to shed some of it through privatisation of numerous 
Government run services. Todate, the government has privatised 14 
government-owned or operated projects and these include, among 
others, a container terminal, a national airline company, a national 
shipping company, roads and bridges, a water supply project and a 



midst 



Within 




plan would be programmes relating to the privatisation of ports, 
public utilities and railway. Postal services and the running of 
airports are also under study for privatisation. 

It is the intention of the government to encourage private sector 
initiative and entrepreneurship. Foreign participation is both 
welcomed and encourated in the privatisation programme 
especially in areas where the technical, business and managerial 
expertise can contribute towards improving the efficiency and 
productivity of the privatised agencies. Also, as the domestic 
capital market may be somewhat limited in its capacity to take up 
the quantum of investment required for major projects, foreign 
capital participation would most certainly be welcomed. 





62 With American Businessmen 




I would like to take this opportunity to mention to you some 
key aspects of the Malaysian investment environment that could be 
of interest to you. In respect of the political situation in our country, 
we have one of the most stable democratic governments among 
developing countries and in fact even among some developed ones. 
Recent inter-party disagreements that you may have read or heard 
about is nothing new within the democratic process and in fact is an 
indication of a healthy and vibrant democracy. I should think that 
western societies, concerned with the status of democracy among 
developing countries, should be more apprehensive if there is a 
total lack of dissension within and between political parties. 

Realising the importance of racial unity, political stability, 
development and economic growth, 13 political parties in Malaysia 
have joined together to form the National Front, the coalition which 
forms the government. The result is that all the different races are 
represented in the Government and issues or problems are 
discussed in the meeting rooms frankly and rationally and the 
consensus arrived at are in the interest of all races. We have no 
need'for differences to be resolved in the streets. The result is that 
there is peace and stability in Malaysia. 

The fact that the National Front and its predecessor, the 
Alliance, have won the elections and formed the Government since 
independence 31 years ago, clearly reflects the people's 
endorsement and confidence in the govemment*s policies. At the 
same time the opposition have always been able to win seats and to 
make their voices heard in Parliament and elsewhere. Clearly 
democracy works and delivers in Malaysia, 

I would now like to briefly touch on the various aspects of 
Malaysia's overall economic performance. The Malaysian economy 
continues to accelerate its growth from a rate of 5.2% in 1987 to a 
projected 7% in 1988, About two-thirds of the growth originates 
from expansion in private spending with consumption growing at 
7-3%, whilst, in the first eight months of 1988 investments have 
significantly increased eight times over the same period in 1987. 




7- With American Businessmen^*^ 




Malaysia is today probably no stranger to the United States of 
America. The picture may have been different several years ago, 
but most certainly today, with American participation in more than 
121 companies in production in the Malaysian manufacturing 
sector, involving total fixed assets exceeding M$ 840.6 million 
(US$ 317 million) the situation is most certainly somewhat 
different. The 121 companies in production, represent only the tip 
of the iceberg for we have in fact approved approximately 311 
manufacturing companies with various degrees of American 
participation during the period 1971 to July 1988, These companies 
with proposed American paid-up capital exceeding M$ 488.3 
million (US$ 184 million) have the potential to make the United 
States of America a force to be reckoned with in the Malaysian 
manufacturing environment. The presence of such big names as 
ESSO, Goodyear, Baxter, General Electric, Monsanto, National 
Semiconductor and Motorola and also a number of small and 
medium-sized American companies is an indication that Malaysia 
is becoming increasingly well-known in the United States. 

Still, despite this indication of the confidence of American 
investors in the Malaysian investment environment, some of you 
may have had your impressions coloured by the reports that have 
appeared in some international media over the last year or so. But 
Malaysia would not be economically and financially sound today if 



We 



cross-check the facts. 




(*) A speech to American Businessmen. New York- 29.09.1988 





III. MALAYSIAN INVESTMENT 

ENVIRONMENT 







58 Is NAM a Moving Force ? 




are others that have managed to avoid scrutinv. We 



name 



apartheid 



NAM 



Pretoria' 



retaliation. 



That there will be retaliation, we have no doubt. Pretoria has 
long sought, with foreign friends, to destabilise the Southern 
African region in order to perpetuate its primacy. We must expose 
these attempts and we must help our brother Africans we are the 
victims. I call on the Movement to determine a programme of 
action to be undertaken and financed collectively to prepare Black 
Africans for that eventual goal of a free South Africa with majority 
rule. Let us help to train the administrators, captains of industry and 
professionals for that eventual goal. Let us disabuse those critics 
who think so little of us by committing ourselves to the creation of 
a multi-racial South Africa with guaranteed political freedom for 
all, blacks, browns and whites. Let us silence our critics and our 
enemies who deride us and aver that the alternative to apartheid is 
chaos. These are smear campaigns by apologists of Pretoria, 
fighting rearguard actions when they must know that there could be 
only one ending, victory for the right and the just. Let us commit 



apartheid 



gnal 



quarter of a century this Movement 



itself. We have evolved from the idealism and fervour of our own 
successful struggles for independence. The challenges of the future 
will be as great as the trials of the past. The picture that now 
confronts us is daunting, the issues complex and multi-faceted. We 



Movement 



Movement 



We 



to ourselves to maintain fully our credibility and to move forward 
to new frontiers in this age of unprecedented human progress. 




Is NAM a Moving Force ? 57 



We 




intention of creating a New International Economic Order but we 
have failed to make any headway. It is for this reason that Malaysia 
hosted the South 11 Conference in May this year. The participants 
represent no one but themselves. But they are dedicated to the 
cause of the South and to finding solutions to the ills that 
plague us. 

We learnt a lot about the problems of the South, their causes 
and the possible ways of overcoming them. It was suggested that an 
Independent Commission of the South should be set up to study and 
propose solutions to the multifarious economic and financial 
problems plaguing the countries of the South, It should set our 
concrete steps for South-South cooperation. It should complement 
and possibly supplement the cooperative efforts undertaken within 
and outside the NAM and G-77 framework, which we generally 
support. Its only distinction is that it will be an independent 
commission unrelated and not answerable to any national 
Government, private organisation or international institution. Its 
members will serve in their personal capacities. 

I have taken the liberty of leaving the most important reason for 
our Summit here in Harare for the last. I refer of course to 
apartheid, a warped system that grew out of demented minds, 
brought to Africa by colonisers and perpetuated by the Pretoria 
regime. To my mind the time to equivocate on the merits and 
demerits of sanctions is well past. In dealing with the Pretoria 
regime, we must strip ourselves of all illusion. We can only break 
that regime's back with relentless economic and political pressure. 
Sanctions, complete and directed at what will hurt most is the final 
weapon, to complement the valiant efforts of Africans in South 
Africa, and in the frontline states. Unfortunately sanctions will only 
really bite if we can manage to get all the countries that still traffic 
with South Africa for various questionable gains to join us. 
Half-hearted, selective and voluntary efforts will not do. We must 
direct our appeal and our exhortation principally to the United 
States, Britain, the Federal Republic of Germany and Japan though 






56 Is NAM a Moving Force ? 




We hear frequently that the world is going through an 
economic recession. This is not true. It is only the developing 
countries which rely on export of commodities that are having a 
recession. The developed countries are actually better off now than 
ever before. Not only are they selling manufactured goods at higher 
prices but they have saved in 1985 some 100 billion US dollars 
because of the fall in prices of all the commodities they bought 
from poor countries. They are rich because we have been forced to 
subsidise them. 

The terms of trade have become much worse with the 
commodity producers getting less than half the manufactured goods 

they got in 1960 from the same amount of commodity exported. 
The worse is yet to come as new technology eliminates the need for 
numerous raw materials or reduces the quantities required. Glass 
fibres have rendered copper obsolete, while paper, glass, plastics 
and alluminium have displaced tin as packaging material. New 
technology has also brought about a glut of all commodities 
undermining the prices further. 

On top of all this we have the problem of dealing with wildly 
fluctuating exchange rates. Thus when Europe and the North 
American countries decided to push up the Yen in order to balance 
their trade, Malaysia's debts increased by 50% from Yen 
revaluation. Fluctuating exchange rates have also stimulated 
speculations in currencies. Anxious to make a fast multi-million 
bucks, banks have been known to push the currencies of poor 
countries down. These countries are then forced to use up all their 
foreign exchange savings to shore up the value of their currency. 

We have been brainwashed until we are convinced of the 
virtues of free trade. But now that we have leamt to make a little 
money from free trade, the erstwhile proponents of free trade have 
resorted to quotas, restrictions, counter-vailing duties, non-tariff 
barriers, etc. to kill us. Divided as we are and incapable of 
depending on our meagre domestic market we can do nothing but 
bemoan our fate. 






Is NAM a Moving Force ? 55 

destroy the present system. But we insist that the existing treaty 
system is inadequate, deficient and not in harmony with the 
development of international relations and needs. 

The importance of Antarctica to all humanity is beyond 
debate. Antarctica should indeed be an internationally accepted 
regime managed in the interest of all Mankind; and we remain 
committed to working towards this objective with all interested 
parties, including the Consultative Parties, in the spirit of goodwill 
and understanding. 

Another issue which has developed significantly and emerged 
as a major problem for both the Movement and the UN is Drugs. 
Malaysia views the drug problem as a major threat to the security 
and well-being of the country. Drugs have been used in the past to 
subjugate a country. We do not wish to be colonised once again or 
to have our security and economy undermined. Accordingly we 
have promulgated the death penalty against drug traffickers. We 
make no apology for this punishment. The traffickers are killing our 
people and causing untold misery. They deserve the death penalty, 
irrespective of colour. 

Malaysia therefore welcomes the endorsement of the Non- 
Aligned Movement for the convening of the International 
Conference on Drug Abuse and Illicit Trafficking in Vienna in June 
1987. Such a Conference will heighten international awareness of 
the need for global action. If concerted global action is to be 
effective, there must be commitment at the highest political level. 

Malaysia calls upon all countries, especially the developed and 
industrialised countries, to do a great deal more towards eradicating 
the drug menace. The developed and industrialised countries are 
better endowed with resources to embark upon an all-out war 
against drugs. After all it is because of their affluence that drug 
trafficking is so lucrative. We feel that the only way to destroy drug 
trafficking is to internationalise the work of destroying the source 
of drugs. 







54 Is NAM a Moving Force ? 



Movement, will durable peace and stability in the region be 
achieved. Hence we strongly support the efforts of the Contadora 
Group as the representative of the region, to build regional cohesion 
and cooperation as a means for promoting the long-term stability of 
the region. 

Another matter of utmost concern to my delegation is the 
massive competition on the part of the superpowers to manufacture 
weapons of mass destruction with scant regard for the safety of the 
rest of the world. The arms race will impoverish everyone. This 
Movement must resolutely continue with its pressure and 
exhortation for general and comprehensive disarmament. In this 
respect, I commend the laudable efforts of India, Pakistan, 
Argentina, Yugoslavia and Tanzania which have together with a 
few non-members of the Movement kept the issue from becoming 
the exclusive domain of the superpowers as well as serving as a 
voice of human reason. 

If we are to remain an essential determinant to the challenges of 
our times, this Movement must respond effectively not only to 
issues of war and peace or of economic well-being but also ones 
which until recently were the exclusive turf of the developed 
countries. I am happy that since I raised the issue of Antarctica in 
the Delhi Summit, much progress has been made due to the 
Movement's heightened awareness and commitment. The 
Movement has approached the issue with reason, moderation and 
judiciousness. However, despite this attitude, it was not possible at 
the Fourtieth United Nations General Assembly to arrive at a 
consensus with the Treaty Parties. With the overwhelming support 
of Non-Aligned countries, the UN had adopted the three resolutions 
which merely sought additional information and an updated and 
expanded study, for information on the Minerals' negotiations and 
for response from the Consultative Parties for the exclusion of 
South Africa from participation as a Consultative Party. 

We seek confromtation with no one. We do not threaten the 
security interests of the Consultative Parties. We do not desire to 






Is NAM a Moving Force ? 53 

Lebanon. Its readiness to display its military might has been 
demonstrated repeatedly. Witness the impunity and arrogance of its 
attack on Tunis in October last year, an act which the United States 
termed 'legitimate self defence', an act which presaged the 
subsequent U.S. bombing of Libya — a blatant disregard for 
international norms of behaviour 

The Tel Aviv regime continues to annex Arab lands through 
violations and a variety of coercive measures. The thrust of Israel's 
policy is to create a Palestinian diaspora, so that the land of the 
Palestinians will be permanently annexed by Israel. The expulsion 
of Jews from the Holy Land 2000 years ago and the Nazi 
oppression of Jews have taught them nothing. If at all it has 
transformed the Jews into the very monsters that they condemn so 
roundly in their propaganda materials. They have been apt pupils of 
the late Doctor Goebbels. 

The situation in Lebanon is yet another result of Israeli 

aggression. We extend our sympathies and solidarity to the brave 
people of Lebanon, and we appeal to the various factions and 
communities in Lebanon to reconcile their differences and deny the 
Tel Aviv regime any pretext for intervention. 

The conflict between Iran and Iraq is a painful lesson to us. The 
misery, death and destruction of both the peoples of Iraq and Iran 
have continued to mount. Yet NAM initiatives and that of the 
Organisation of Islamic Conference (OIC) and the UN have 
brought no results. Tragedy shrouds the conflict. In the name of 
sanity and humanity, Iran and Iraq must quit the batdefields and go 
to the negotiating table. 

Developments in Central America should also be of great 
concern to us. East-West ideological conflict is raising its ugly head 
in the region. Experiences in other parts of the world have proved 
beyond any doubt that such imposition upon the genuine freedom 
of the peoples will only lead to endless suffering and bondage. We 
believe that only through genuine regional efforts, free from East- 
West ideological conflict, and in the spirit of the Non-Aligned 







52 Is NAM a Moving Force ? 



therefore, strongly urge Vietnam to carefully and seriously 
reconsider the proposal in the interest of ending peacefully their 
long drawn-out occupation of Kampuchea. Such a response from 
Vietnam will surely promote confidence in Southeast Asia, thereby 
enhancing the prospects for peace and stability in the region while 
at the same time paving the way for mutually beneficial 
co-operation between Vietnam and all states of Southeast Asia, 
particularly the ASEAN countries. We can then create a Zone of 
Peace, Freedom and Neutrality in South East Asia that can benefit 
us. 

While this occupation of Kampuchea continues, my delegation 
is disappointed that once again the delegation of that unfortunate 
country is unable to take its rightful place at this Summit. My 
delegation cannot accept the so-called 'consensus' to create a 
vacant seat for Kampuchea perpetrated at the Havana Summit in 
1979. It will be recalled that at the New Delhi Summit in 1983 we 
agreed to request the Co-ordinating Bureau to examine and make 

appropriate recommendations to this Summit regarding the seating 
of Kampuchea, including the criteria and procedures for the 
suspension or expulsion of members of our Movement. We regret 
to note that this has not been done and we would urge compliance 
with the decision and the early return of Kampuchea to its Non- 
Aligned Movement seat. 

The situation in West Asia is an outstanding example of our 
inability to act even marginally to contribute to a solution. The 
immovable obstacle to peace in this area is Israel's continued 
rejection of attempts at achieving a comprehensive political 
settlement which must include the return of Arab territories, the 
right of Palestinians to self-determination, and the right to return to 
their homeland. 

Israel is able to continue its intransigence and complete 
defiance due to the support of the United States. Israel's penchant 
for aggression and violence knows no bounds. The whole world 
was witness to the awesome destruction that it unleashed on 







Is NAM a Moving Force ? 51 

alongside developed countries even. In disarray, our mor^ 
authority and our voices become muted and in effective. 

Malaysia condemns all foreign military intervention. We 
condemn all attempts to install puppet regimes as an instrument of 
hegemony. We condemn them in Asia, in Africa, in Europe or in 
Central America. Naturally we are more concerned when these 
things happen close to our shores. Naturally too, we are more 
concerned when it can escalate into a direct threat towards us. But 
we condemn all attempts to use a military solution in overcoming 
international problems or problems with neighbours. 




We 



We 



We 



lack of justice or transgression of human rights. But we have no 
right to send our troops in to install a Government to our liking. 

Therefore Malaysia condemns such action and reserves the 
right to support the ousted legitimate Governments politically in 



their attempts to regain control of their country. We feel that this 
Movement should have a united stand on this. Whether the 
aggression is perpetrated by the big powers or by one of us, we 
should condemn it as a matter of principle. Then and then only can 
we gain credibility and moral force as a group of non-aligned 
nations. 

In South East Asia we wish to establish a Zone of Peace, 
Freedom and Neutrality or ZOPFAN. The continued presence of 
Vietnamese forces in Kampuchea renders this objective impossible 
of achievement. We have accordingly tried to persuade the 
Vietnamese to leave Kampuchea. We have even tried to moderate 

m 

the demands of the people of Kampuchea, so that Vietnam and 
respond more easily. 

Accordingly the Kampuchean leaders in exile have drawn up 
the Eight Point Proposals recentiy, which we feel represent an 
important milestone in the search of a framework for a 
comprehensive and durable political solution to the problem. We, 






50 Is NAM a Moving Force '1 



} 



progressively emasculated that we will collapse if deprived of the 



military and political aids from our former 



We 



and sometimes even over our relationship with neighbours and 
distant lands. Sometimes we are made proxies in other peoples 



games 



testing of weaponry. 



We came together to conceive the New International Economic 
Order (NIEO). Now, fourteen years after the enunciation of the 
concept of NIEO we are still overwhelmed by unbearable external 
debts, straight-jacketted by protectionism and beggared by volatile 
interest and exchange rates. How free are we ? How unaligned are 
we? 

Freedom clearly needs to be quantified as much as it has to be 
nurtured, It has to be managed like an institution. On our own, 
singly, barring a few giants among us, we are quite helpless. Our 
strength and our ability to act lies in our collective will and voice. 
In concert and on well-prepared grounds, the voice of this 
Movement spanning Latin America, Africa and Asia and a part of 
Europe will resound strong and powerful. It will then take on the 
quality of a moral force tied to principles that we committed 
ourselves to twenty five years ago. 

But how often have we spoken with one voice ? Surely we 
must realise that many of us have become partisan and biased in 
our views. We condemn a breach of international behaviour 
because of a certain principle but when the same breach is 
perpetrated by those we are inclined to be friendly with, we lower 
our voices or become totally mute. The principle we uphold seems 
flexible. That others do it too, the powers in the north, is no excuse. 
They have brute strength. We depend on moral suasion. 

Some condemn International Agreements for some 
commodities and refuse to cooperate to estabilise prices while with 
other commodities that they produce and export they form cartels 






6- Is NAM a Moving Force ?^*^ 




The fact that today more than a hundred countries have chosen 
the path of non-alignment illustrates the increasing desire of nations 
and peoples to be free from interference and domination by the 
power blocs of East and West. It is gratifying to note that despite 
the never-ending threats and pressures our Movement has managed 
to consolidate itself. Our work is clearly cut out before us. That we 
have remained a factor for peace, rational order and economic 
equilibrium is beyond dispute. But it is a moot point whether we are 
the moving force, that essential determinant, to redress the 
inequalities in international economic relations or the festering 
international political issues. 

Twenty five years after the Movement's inception is a good 
time for stocktaking. Are we still at the level of enunciating 
principles or is the Movement truly cutting a clear path between the 
forces of bloc politics ? I suspect the answer will be a sobering one. 
Twenty five years ago many of to-day's countries of Latin America, 
Africa and Asia were colonial territories of various European 
powers. The traffic was one way, with the wealth of the colonies 
flowing north to enrich the imperial coffers. 

That period of humiliation has ended of course. All of us now 
claim to be masters of our own fate and fortune. If eloquence is the 
yardstick, our voices ring out loud and clear that we are free. But let 
us not delude ourselves. While we are legally free, the process of 
economic and political emasculation has rendered that freedom less 
than real. We cannot act freelv because we have been so 





(*) A speech at the 9th Conference of the Heads of State or Government of NAM. Harare, 
Zimbabwe, 01.09.1986. 






48 The Future of NAM 



the UN we would not see the more peaceful world that we are 
seeing today. The Iran-Iraq war, the Soviet occupation of 
Afghanistan, the South African recalcitrance on Namibia, the 



disturbances in several African Central American countries and the 
problems in Asia would not be resolved or reduced but for 

the UN. 



We have a dutv to strengthen the UN 



We 



take over. We 

LIS tain and sun 




work. 



Finally we must ensure that the Non-Aligned Movement 
remains relevant. The East and the West may patch up their 
differences. They may cease trying to drag us into their conflicts. 
But there is no guarantee that we are going to get a fair deal from 
them either separately or together. The signs are not yet propitious 
for a fairer deal from the North. Released from their preoccupation 
with each other's threat, each will have more time to cast baleful 
eyes onus. 

It is imperative therefore that we stay together, that we present 
a united front, that we continue to strive for a more just and 
equitable world. We must be free to choose our own way of 
managing our internal affairs without outside interference. We must 
not allow ourselves to be harassed by crusading movements which 
have now taken over where their Governments have become 
unacceptable. No one should have a monopoly on refining the 
definition of rights and wrongs. Free people must be free to refine 
and redefine basic values themselves. Unless the deviation from 
basic values is flagrant, diey should not be interfered with. As much 
as human freedom must be upheld, so must national freedom be 
upheld. Internal democracy without international democracy means 
imperialism will continue to plague this world. 





The Future of NAM 47 



We 




an 



this throwback of the racist past. Indeed, we have to increase the 
pressure for the process needs to be hastened. Our black brothers in 
South Africa have suffered long enough. 

The Palestinian problem is another example where the 
Movement must insist that the international community particularly 
the major powers own up to their responsibilities and commitments. 
Israel's policy in Palestinian and other Arab territories must 
continue to be universally condemned. The Intifada has exposed the 
true character of the Israelis. They are no better than their former 
oppressors. Yet the PLO has been courageous enough to accept 
reality and the need for a comprehensive political settlement. The 
friends of Israel must now force it to respond. 

As regards Cambodia, the conflict now has an international 
framework. Clearly the Cambodian factions must be mindful of 
their responsibilities. There must be a sharing of powers under the 
leadership of Prince Sihanouk. The universally condemned 
practices of the past must no longer threaten Cambodia nor can 
there be foreign armies transgressing Cambodian sovereignty. 

As for Afghanistan, it is time that the unrepresentative 
Government steps down and the fratricidal fighting give way to a 
Government by consensus. The people of Afghanistan deserve this 
for their courage and unprecedented fortitude. 

Malaysia has always taken a strong and consistent stand against 
drug traffickers. Now that drug barons are not only able to corrupt 
and to indulge in violence but also to declare war on a nation, we 
hope that the seriousness of the drug menace to a nation's 



be better 



We 




world wakes up to the need for a truly all out efforts. 

In the meantime we have to ensure that the revitalisation of the 
UN is completed. There can be no doubt that but for the efforts of 






46 The Future of NAM 



vague boundary separates the exercise of freedom and the excesses 
of anarchy. 

Countries which for thousands of years had only known 
authoritarian rule cannot become democratic overnight. Sudden 
freedom will result in disruptions, which in turn will retard the 
progress towards a more liberal and open society. The liberal 
democrats of the west should cease trying to force the pace. They 
should let the people concerned work things out for themselves. 

Unfortunately instigations by the liberal democrats of the west 
have already resulted in bloodshed and retardation of the progress 
of some countries. The problem is exacerbated by the attempts to 
apply sanctions after the foreign inspired disturbances are put 
down. 

The peoples in the countries undergoing change should 
exercise restrain. Demanding too much too soon is counter 
productive. The western liberals should be ignored. With patience 
and judicious pressure the changes will take place. Do not be 
goaded into wild demonstrations which can only attract repression 
and delay the very change you yearn for. 

Many of the world's problems are still with us and among them 
is the despicable apartheid system of South Africa. The efforts to 
eliminate the hideous system and bring about majority rule in South 
Africa must be redoubled. A major socialist country who has 
always condemned apartheid would now appear to be soft peddling 
the need to intensify the struggle. Negotiations are being attempted 
when everyone knows that apartheid has to be eliminated and in no 
way can it be reformed. The blacks of South Africa cannot afford 
even the slightest slackening of world-wide support for their cause. 
The white regime of South Africa must be ostracised and 
condemned. Sanctions must be more effectively applied. 

We already see some results from sanctions. The white regime 
is beginning to make overtures, although some of the noises 
emanating from them are hypocritical. In Namibia, the South 






The Future of NAM 45 



debtors. 



and bankrupting countries is not going to help anyone. 
Id the people of a country be punished as society punishes 




The only real solution to the debt crisis is to write-off the whole 
or very nearly the whole of the debts owing. The lenders must 
admit they were indiscreet and must pay for it. Commercial banks 
and Governments alike must accept the losses. The Governments of 



bankrupted 



be 



The countries of the South have formed a South-South 
Commission to look into ways of solving the problems of the poor 
countries through South-South cooperation. The willingness of 
poor people to help each other is limited. But the potentials of the 
poor are not so limited. We have, if nothing else, our huge 
populations which can be harnessed for our development rather 
than being only migrant workers in the North. Instead some labour 
intensive industries should be relocated in the South to provide 
employment and contribute towards its economic growth. Induced 
brain drain to the North should be stopped. 

Democracy is being preached by the liberal democrats of the 
West with religious fervour. Everyone must accept liberal 
democracy or have their countries destabilized, civil war formented 
or at the very least economic sanction and vilification by the media. 

We are all for human rights and for democracy. But human 
rights and freedom must begin with the right to be free from hunger 
and disease, malnutrition and illiteracy. Human rights as defined by 
the West is meaningless if there is no roof over our heads, no food 
on our tables and no schools for our children. The Western liberals 
must understand that we cannot practise their brand of democracy 
and human rights overnight. Nor do we want a carbon copy in their 
own image. The democratic system requires an advanced degree of 
sophistication among the masses practising it. The people must 
know the limits of freedom if anarchy is to be avoided. Only a 





44 The Future of NAM 



environmentalists' and 'self-appointed human rights fighters* who 
- would rather have disruptive civil wars in the poor nations than 
permit them to ^violate the latest in human rights'. 

In Malaysia a campaign is being waged by outsiders to force a 
primitive jungle tribe, the Penans, to remain primitive on the 
grounds that this is their right. That the people live a miserable life, 
without the amenities that other Malaysians enjoy, is not given any 
thought. That these people suffer from all kinds of diseases and 
consequently have a shorter life-span is ignored. The outsiders want 
to retain the so-called picturesque way of life of these unfortunate 
people forever. They are to remain museum pieces. 

The sympathy for the Penans is hypocritical. All these so-called 
environmentalists are interested in, is to prevent tropical timber 
from competing with temperate softwood. 

Yet reafforestation is a natural process in the rain-drenched 
countries of the tropics. These forests regenerate withot need for 

replanting and trees grow the whole year round. The debt for nature 
offer will still not solve our long term development needs. Besides, 
the shifting slash and burn cultivators whom we are prevented from 
resettling will still destroy the forests. The rich should spend their 
money to reafforest their own lands and the world's deserts. Reduce 



and 



and 



bulbs or hand pump 
and there should be 
making poor countri 

Many poor cou 



When 




borrower overborrows, the fault is not entirely his. The lender is 
equally to be blamed as he has made an imprudent loan. He must 
therefore pay for his indiscretion. 

Schemes to collect debts from some of the most extensively 
indebted countries are simply not going to work. Refusing to lend 









The Future of NAM 43 




The terms of trade are not getting any better for the third world. 
But now protectionism and unfair trading methods are creating 
havoc with the economies of the poor. While subsidies by the third 
world may result in countervailing duties by the rich, they 
themselves subsidise their industries to the point where 
overproduction is encouraged and the markets become saturated. 
Consequently the products of the poor nations have become 
unsaleable. Surplus food is used to deprive poor countries of their 
markets. 

The environment is now made into a trade weapon. The 
thinning of the ozone layer is blamed on logging of tropical forests. 
The fact that the burning of fossil fuels and release of CFC into the 
atmosphere occur largely in the rich countries are significantly 
ignored. Also ignored is the logging of vast tracts of temperate 
forests which is still going on despite the fact that millions of 
square miles of temperate forests have already been cleared for 
development of the rich countries over the centuries. 

In the deserts of America underground water is pumped up to 
water golf courses and create lakes to build luxury hotels on. Yet 
the water can easily reafforest the deserts to reduce the gases which 
destroy the ozone layer as well as creating the green house effect. 
Instead poor countries are being forced not to extract wealth from 
their forests in order to keep the environment safe for the rich. 

The developed countries have now appointed themselves the 
arbiter of human rights worldwide. In the name of human rights 
they have applied all kinds of pressures on countries unable to 
defend themselves. Every now and again new forms of human 
rights are invented and any country found defaulting is subjected to 
vile publicity and other repressive measures. 

Having been responsible for the killing and torture of millions 
in the past, they now adopt a holier than thou attitude and want to 
impose their new-found ideas on human rights on the rest of the 
world. Although the missionaries have largely disappeared, they 
have now been replaced by the equally fanatical 'crusading 





^m 



42 The Future of NAM 



On the economic front, however, we see disturbing trends 
toward consolidation of the developed countries into powerful 
trading blocs. We see the centrally planned socialist countries 
moving away from political affinities in favour of economic 
benefits. 

The lines that divide East and West are becoming blurred. The 
first and second worlds are no longer distinct. If the reason for the 
Non-Aligned Movement is to provide a third force to limit and 
balance the disruptive influences of the other two, what will be its 
role now that its principle raison d'etre is seemingly disappearing. 
Should we regard ourselves as no longer relevant or is there going 
to be a new confrontation for which we have to prepare, a 
confrontation between the combined East and West in the Northern 



and 



South. 



While we mull over the future of our movement in a less 
divided world we have also to consider the realities of the present. 
Rapprochement between East and West may reduce tension 
between them but many of the pressures we have been subjected to 
have not lessened. Indeed in many instances they have increased 



taken new forms 



United 



inferior role while new and exclusive fora have been formed 
designed to exclude the participation of the poor nations. The group 
of seven rich nations have taken it upon themselves to regulate the 
world's economy and finances. One result is that countries like 
Malaysia have had their debts doubled by the upward revision of 
the Yen we borrowed. The intention is to reduce Japanese exports, 
but we have to pay the price. 

But Japan has not been made any less competitive by the Yen 
revaluation. Instead it is now twice as rich and is buying up 
businesses and properties belonging to the other six. This can be 
regarded as poetic justice but unfortunately the finances of the poor 
suffered as well. 







5- The Future of NAM(*> 




It was in Belgrade that the historic meeting of the heads of non- 
aligned nations was held in 1961 to usher into a troubled world a 
third force to mitigate the effects of East-West confrontation. In the 
28 years of its existence the Non-Aligned Movement has played a 
vital role to prevent the world from being completely split into two 
warring blocs. It has been a costly role. Many of us have had our 
arms badly twisted, have been subverted, have been wasted by 
proxy wars, have had to fight and fight again to retain our 



independent 



social, economic, political and ideological 



independence. But we have also gained. Slowly and painfully the 
world has been made a more peaceful place. The East-West 
rivalries also served to highlight the needs of poor countries, and 
the necessity for helping them. 

Today we see a vast change in the world's political scene. 
Although it is too soon to say that East-West confrontation is over, 
the fact remains that the intensity of the ideological struggle 
between the two blocs has abated. We see the two superpowers 
talking to each other. We see the elimination of some nuclear 
weapons and the reduction of some conventional ones. We see the 
changes in Poland and Hungary, the withdrawal of Soviet forces 
from Afghanistan, the tendency to compromise and reduce the 
proxy fights in third world countries. We see also a trend towards 
peace. The ceasefire has been achieved in the Iran-Iraq war, the UN 
is now overseeing the birth of Namibia, the problems in Angola and 
Mozambique are set to end. 





(*) A speech at the 9th Conference of the Heads of State or Government of NAM. 
Belgrade. Yugoslavia. 04.09.1989. 




40 Revitalising the Non-Aligned Movement 




for whatever reason. They may not agree with us in everything. But 
in the opposition to war very many will be with us. They are ready 
to oppose their warlike leaders. We must work with them. 

This then is our struggle. We are not irrelevant. We are not 
anachronistic. We have a vision, the vision to build a new world 
order, a world order that is more equitable, more just; a world order 
which is above all free from the age-old belief that killing people is 
right, that it can solve the problems of relations between nations. 

For all that we must revitalise the Non-Aligned Movement. 
And that vitality can only come from our closing ranks and acting 
together. 






Revitalising the Non-Aligned Movement 39 



longer be bound by the results of a world war fought more than half 
a century ago. Everyone must disarm. Weapons of mass destruction 
must be disallowed for all. And there should be no more research 
into making conventional weapons more lethal. 

If it is right for an international agency in a globalised world to 
oversee human rights, business practices and the kind of democracy 
practised by countries, then a truly International Agency beholden 
only to the United Nations General Assembly; should oversee the 
military budget of all countries, big and small. Trading in arms 
must come under United Nations supervision. Brutal ethnic 
cleansing must be stopped by a multinational standing army. 

When Japan was defeated, it was allowed to spend only one 
percent of its GDP on its armed forces. If such a condition can be 
imposed on Japan, why cannot it be imposed on all countries ? 

In the struggle to outlaw war and control arms, nuclear as well 

as conventional, NAM will find growing support from among many 
people in the North. It is a daunting task nevertheless. But unless 
we take the moral high ground now, we will wait in vain for the 
powerful North to voluntarily give up slaughtering people in the 
name of national interest. 

Again I would like to say that NAM must struggle to oudaw 
war. NAM must struggle to outiaw nuclear weapons. NAM must 
struggle to stop the research and development of more and more 
lethal so called conventional weapons. NAM must struggle to 
control the arms trade. 

We must work for a new world order, where democracy is not 
confined to the internal governance of states only but to the 
governance of the world. We must work for the revival of the 
United Nations and multilateralism. We must work to do away or 
modify the powers of the victors of a war fought half a 
century ago. 

We know we arc weak. But we also know we have allies in the 
North. They too want the abolition of wars, the slaughter of people 







38 Revitalising the Non-Aligned Movement 




fear into the hearts of everyone, make them afraid of their own 
shadows. 

But their acts have also removed all the restraint in the 
countries of the north. They now no longer respect borders, 
international laws or even simple moral values. And they are now 
talking of wars, of the use of military conquests in order to change 
Governments. They are even talking of using nuclear weapons. 

It is no longer just a war against terrorism. It is in fact a war to 
dominate the world i.e. the chromatically different world. We are 
now being accused of harbouring terrorists, of being Axis of Evil, 
etc, NAM has a lot of problems and issues which it must tackle. But 
at the moment the most important threat that we face is the 
tendency of the powerful to wage war when faced with opposition 
to the spread of their dominance. We cannot fight a war with them. 

Fortunately many of their people are also sick of war. They 
have come out in their millions to protest the warlike policies of 

their leaders. We must join them. We must join their struggle with 
all the moral force that we can command. 

War must be outlawed. That will have to be our struggle for 
now. We must struggle for justice and freedom from oppression, 
from economic hegemony. But we must remove the threat of war 
first. With this Sword of Democles hanging over our heads we can 



advancing 



War 



must be by multilateral forces under the control of the United 
Nations. No single nation should be allowed to police the world, 
least of all to decide what action to take, when. 

Globalisation must not be confined to the exploitation of the 
wealth of the earth only. Globalisation must include the multilateral 
protection of countries threatened by war or hegemony. 

There must be a new world order in which power is shared 
equitablv bv all. The United Nations must be reformed. It must no 





Revitalising the Non-Aligned Movement 37 





children and old people. Whether it is terror attacks or military 
action, these are the victims. 

In primitive wars the carnage is witnessed by the warriors. 
While die suicidal terrorists die with each attack, the great warriors 
who press the buttons see nothing of the mangled bodies, the heads 
and limbs which are torn from disembowelled bodies, the blood and 
the gore of the innocent people who an instant before were living 
people like them. And because they don't see, the button pressing 
warriors and the people who commanded them go back to enjoy a 
hearty meal, watch TV shows or moral boosting troop entertainers 
and then retire to their cosy beds for a good sleep. Tomorrow they 
would make more sorties, to carpet bomb more children, women 
and old people or they would press more buttons to send missiles to 
tear off more heads and limbs. 

War is about slaughtering people. Newer and more brutal 

weapons are being invented to kill more people more efficiently. 

And now there is talk that the use of nuclear weapons is justified. Is 

it because the people to be slaughtered are chromatically different ? 

Is it because they cannot hit back ? 

Our meeting here today is a meeting of Heads of States and 
Heads of Governments. We must admit that our organisation has 
not been as effective as it should be. We may want to remain 
uninvolved and to avoid incurring the displeasure of the powerful 
countries. But our people are getting restless. They want us to do 
something. If we don't then they will, and they will go against us. 
They will take things into their own hands. Unable to mount a 
conventional war they will resort to guerrilla war, to terrorism, 
against us and against those diey consider to be their oppressors. 

They cannot be ignored any longer. We cannot incarcerate 
them all for we do not always know who they are or where they 



are. 



Sept 1 1, has demonstrated to the world that acts of terror even 
by a dozen people can destabilise the whole world completely, put 






36 Revitalising the Non-AIigned Movement 



The fact is that the poor countries have been and are being 
oppressed and terrorised by the rich countries. Naturally the poor 
are bitter and angry and have lost faith in justice and honour. And 
the last straw which caused them to resort to futile and destructive 
terror attacks is the blatant support for state terrorism as practised 
by Israel and others. If Israeli terrorism is a response to Palestinian 
terrorism, then Palestinian terrorism, and terror acts by their 
sympathisers must be due to the expulsion of Palestinians from 
their land, the further occupation of Palestinian territory and the 
open support for Israeli intransigence and terrorism by the 
Europeans. But the developing countries must admit that we are 
also responsible for the mess the world is in today. We have not 
used our independence and freedom to develop our countries for 
the good of our people. Instead we have been busy overthrowing 
our Governments, setting up new Governments which in turn 
would be overthrown. We have even killed our own people by the 
millions. And frequendy, frustrated with anarchic democracy we 
resort to autocratic Governments, exposing ourselves to much 
vilification. 

The result of this confrontation between the haves and the 
have-nots, the developed and the developing is a world that is 
practically ungovernable. Despite all the advances in science and 
technology, the world is in a terrible state. With more than enough 
food to feed the six billion people of the world, fully one in six is 
actually underfed, starving, with hundreds dying daily. 

Since Sept 11, the rich and the powerful have become 
enraged with the poor half of the world. And their extreme 
measures to ensure security for themselves have only amplified the 
anger of the oppressed poor. Both sides are now in a state of blind 
anger and are bent on killing each other, on war. 



War 



War 



is primitive. Today's war is more 
primitive than stone-age wars. The targets are not the fighters, the 
combatants. The target is the ordinary civilians, the women, 






^ffipl 




Revitalising the Non-Aligned Movement 35 




meaning of competition if you cannot win at all. In the end a few of 
these monsters will control the economy of the whole world. 

The sad thing is that they are not above cheating and 
corruption. And we know they can fail. We have seen how 
spectacularly they fail - losing 100 billion dollars in one year. And 
that is only one corporation. 

Then there are the rogue currency traders who destroyed the 
economies of half the world, threw tens of millions out of work, 
bankrupted banks and thousands of businesses, cause the collapse 
of Governments and precipitated anarchy; all so that half a dozen 
individuals can make billions for themselves. 

Now the rich give no more aid. They do not lend either. And all 
the time the international agencies they control try to strangle the 
debt laden poor countries which had been attacked by their greedy 
market manipulators. 

The disparities between rich and poor widen daily. The rich 
have per capita incomes of more than 30,000 US Dollars, the poor 
only 300 US Dollars. Still the rich want to squeeze out literally the 
last drop of blood from the poor. 

It is this which plagues the world today, this oppression of the 
poor by the rich; this injustice, this inequality. To rub salt into the 
wound the poor are always being told that they lack transparency 
and good governance, they don't respect human rights, they don't 
uphold freedom of speech, freedom of the press and so on and so 
forth, when in fact it is the rich who lack transparency, who do not 
respect human rights, who curb our rights to speak the truth about 
what they are doing, who use their media to hide their misdeeds and 
spread lies. How else can we interpret the operations of the hedge 
funds and the currency traders, sanctions and the systematic 
bombings of certain countries, the impoverishment of the already 
poor, and the censorship of news as well as distorted and fabricated 
reports about the south. 






34 Revitalising the Non-Aligned Movement 



are considered collaterals, are not the 3,000 who died in New York 
and the 200 in Bali also just collaterals whose deaths are necessary 
for the operations to succeed ? 

Actually the life of any human being is sacred, no matter if the 
person is a friend or an enemy* That is why war is not a solution. A 
contest based on who can kill more people in order to establish who 
is the victor and who the loser, worst still in order to determine who 
is right and who is wrong, is primitive and does not speak well of 
the so called high level of civilisation we have achieved. The 
greatness of a nation should be based on a culture that values high 
moral qualities, aesthetics, learning and advancements in the 
sciences. Unfortunately thousands of years after the stone-age we 
still measure the greatness of a nation by the capacity to slaughter 
the greatest number of people. 

But the oppression and injustice is not confined to waging 
war and killing people; there is oppression in ideological 
propagation. We are now allowed only a democratic system of 
Government. We admit it is by far the best system of Governments. 
But applying sanctions, starving people, denying access to 
medicine in order to force the acceptance of democracy hardly 
seem to be democratic. Actually millions have died because they 
have not converted to this new religion. And millions more are 
suffering because they are unable to make democracy work, 
because of the resulting anarchy. 

Relieved of the need to compete with the Communists, the 
capitalist free traders have ceased to show a friendly face. Their 
greed knows no bounds. They want countries which had fought 
hard to gain independence, to give up that independence, to do 
away with their borders, to allow the capitalists free access to do 
what they like to the economies of these countries. They call this 
free-competition. As they merge and acquire each other, they 



giants 



What 






Revitalising the Non-Aligned Movement 33 



Frankly I do not think so. Frankly I think it is because of a 
revival of the old European trait of wanting to dominate the world. 
And the expression of this trait invariably involves injustice and 
oppression of people of other ethnic origins and colours. 

If we care to think back, there was no systematic campaign of 
terror outside Europe until the Europeans and the Jews created a 
Jewish state out of Palestinian land. Incidentally terrorism was first 
used by the Haganah and the Irgun Zvai Leumi to persuade the 
British to set up Israel. The Palestinians were actually ejected from 
their homes and their country and forced to live in miserable 
refugee camps for more than 50 years now. 

It is the struggle of the Palestinians to regain their land that has 
precipitated, first conventional wars, then civil protest and 
eventually violent demonstrations. The Israelis demanded European 
support to atone for European crimes against them in the past. In 
desperation the Palestinians finally resorted to what is described as 

acts of terror. Rightly, this is condemned by the world. But the 
world does not condemn as acts of terror the more terrifying acts of 
the Israelis; the massacres in Sabra and Shatila, the shooting and 
killing of children, the use of depleted uranium coated bullets, the 
bulldozing of Palestinian homes while the occupants are still in 
them, the helicopter gunships etc. And Israel is now threatening to 
use nuclear weapons. 

These blatant double standards is what infuriates Muslims, 
infuriates them to the extent of launching their own terror attacks. If 
Iraq is linked to the Al-Qaeda, is it not more logical to link the 
expropriation of Palestinian land and the persecution and 
oppression of the Palestinians with September 11 ? It is not 
religious differences which angered the attackers of the World 
Trade Centre. It is simply sympathy and anger over the 
expropriation of Palestinian land, over the injustice and the 
oppression of the Palestinians, and Muslims everywhere. If the 
innocent people who died in the attack on Afghanistan, and those 
who have been dying from lack of food and medical care in Iraq, 







32 Revitalising the Non-Aligned Movement 




In the meantime the economy of the world has slowed down 
and in some instances has been reversed, with huge deficits 
burdening countries. Jobs are lost and poverty is increasing even in 
the rich countries. No new investments in foreign countries or at 
home. With the threat of war, oil prices have shot up, increasing 
further the economic and social burdens of the poor countries. 

Aid for the poor has practically stopped and loans are not 
available as the poor countries defaulted and defaulted again. 

Truly the world is in a terrible mess, a state that is worse than 
during the East- West confrontation, the Cold War. All the great 
hopes following the end of the Cold War have vanished. And with 
the terrorists and the anti-terrorists fumbling blindly in their fight 
against each other, normalcy will not return for quite a long while. 

Surely at some stage we must ask ourselves why this is 
happening to the world. Why is there terrorism ? Is it true that the 
Muslims are born terrorists because of the teachings of a prophet 
who was a terrorist ? How do we explain the programs, the 



inquistitions and the holocaust which characterised Christian 
Europe for almost 2000 years ? Why did the Jews choose to seek 
haven in Muslim countries whenever Christian Europeans persecute 
them ? Do people seek safety in the land of terrorists ? Does not 
sound very likely. 

The Christians too were terrorised, not by Muslims but by 
fellow Christians who condemned them as heretics. They were 
persecuted, tortured, burnt at the stakes for their beliefs and forced 
to migrate. Seems that, the Muslims did not have a monopoly of 
terrorism, certainly not on the scale of the holocaust, the programs 
and the inquisition. 

So it cannot be that Muslims are the sole cause of all these 
problems. If they are not, then is it a clash of civilisation, a clash of 
the Muslim civilisation against the Judeo - Christian civilisation, 
that is responsible ? 







4" Revitalising the Non- Aligned 

Movement^*^ 




This Summit Meeting in Kuala Lumpur, the first to be held in 
the new century, indeed the new millennium, is taking place at a 
most crucial time. The world now lives in fear. We are afraid of 
everything. We are afraid of flying, afraid of certain countries; 
afraid of bearded Asian men, afraid of the shoes airline passengers 
wear; of letters and parcels, of white powder. The countries 
allegedly harbouring terrorists, their people, innocent or otherwise 
are afraid too. They are afraid of war, of being killed and maimed 
by bombs being dropped on them, by missiles fired from hundreds 
of miles away by unseen forces. They are afraid because they 
would become the collaterals to be killed because they get in the 
way of the destruction of their countries. 



The preparations and the measures taken to ensure security go 
on frantically. Trillions of dollars are spent by the world for new 
weapons, new technology, new strategy; the deployment of forces 
and inspectors worldwide. Those who cannot afford these security 
measures must simply await their fate and trust in God. Yet despite 
all these, terrorist attacks have taken place where they are least 
expected, killing the collaterals again. There is still no guarantee 
that the well dressed, clean-shaven family man next door might not 
become another hijacker, crashing his aircraft into buildings and 

killing collaterals. 



(*) A speech at the Opening Session of the Summit Meeting of NAM. Kuala Lumpur, 



24.02.2003. 





II. NON-ALIGNED MOVEMENT 

(NAM) 






Islam is Concerned with Justice Everywhere 27 




Muslim countries and prevent the solution of the Palestinian 
problem. But it is saddening that there should be Muslim countries, 
knowing all these, working hand in glove with the enemies. 

Islam is concerned with justice everywhere. Justice is not for 
Muslims alone. It is for everyone. Just as we do not want to see 
Muslims oppressed, we cannot just stand apart and watch others 
being oppressed with injustice. It is for this reason that we must 
strive to bring about the demise of the apartheid regime of South 
Africa. If there are Muslims in South Africa who are also 
oppressed, we should be even more concerned. It behoves us to cut 
all trade and economic connections with the dastardly regime of 
South Africa. 

Malaysia is also gratified that two major issues have now 
been included in the agenda of the OIC. I refer to the status of 
Antarctica and the drug problem. The concern of this Conference 
will strengthen the efforts to make Antarctica accessible to 
everyone, while the fight against drug addiction will be more like to 
yield result. 

There is a catalogue of other problems and tragedies in the 
Muslim world which have already been mentioned by others in this 
debate. I do not propose to repeat them except to say that I share the 
views expressed. Fortunately the grim picture that has been painted 
is pierced by one small ray of hope. 

For a long time the OIC has been striving to bring to a 
successful conclusion the struggle of the Moro people of the 
Philippines, The efforts of the OIC have now resulted in an 
agreement which will accord autonomy to the islands people by 



We 



We 



Islamic 



taken 






26 Islam is Concerned with Justice Everywhere 



We deserve, therefore, to have our affairs and our problems 
given equal and fair treatment. Yet, we find that on the basis of 
Islamic universalism, some countries claim special rights to 
disregard boundaries and sovereignty. However, these same 
countries object to the slightest violation of their own territories. 

We would like to think that the Muslim Ummah forms just one 
single integrated community unseparated by boundaries of race or 
worldly ideologies. And indeed they do belong to one community 
when their faith and religion is threatened or besmirched. But 
otherwise there is a need to acknowledge that we do belong to 
separate countries and races in matters that do not threaten the 
Ummah as a whole. There should therefore be no interference in 
the purely domestic affairs of each other. There should be no 
subversion or instigation merely because we do not like the rulers 
of a particular Muslim country or their system. 

Yet we find that the problems of the Middle East have become 
a web of power rivalries and intrigues among Muslim states to the 
extent that the central issue, that is the restoration to the 
Palestinians their homeland and to end the desecration on our holy 
shrines in Al-Quds, has been side-stepped. Why have we, through 
our strife and discord, enfeebled ourselves to the extent that there is 
hardly any resistance left against the rampaging Zionists ? Any 
perceptible chance of a real solution in the Middle East now 
depends primarily on the initiatives of others, not us. We have at 
various OIC meetings declared our unity of purposes on this matter 
but the fact is, we remain in disarray. When we should all be behind 
the PLO, some of us plot for the downfall of its acknowledged 
leader, Yasser Arafat. 

The Iraq-Iran war is further evidence of the manipulation of 



5m. The \ 
Muslims 



We 



We know 



this war for their own purpose, to ensure the continued weakness of 









Islam is Concerned with Justice Everywhere 25 




demise 



and 



accelerated process of change, we from the Muslim world have 
taken our rightful place. If we have not, we must refocus our 
attention to the changing world outside or else the Muslim people 
will be left forever at the periphery, helpless even to defend 
ourselves and our faith. In essence, we must rekindle the vision of a 
dynamic Muslim community. The fallacy of regarding the Islamic 
way of life as confined solely to codifying the 'dos' and 'don'ts' 
will shut the gates of 'IJTIHAD' - the quest of knowledge, 
judgement and reason in accord with Muslim values and mind. It is 
time that we discard outdated interpretations which still linger in 
our thinking, that this world and all its wealth and potentials are not 
for us - that our reward is purely in the Hereafter. 

Economic and technological progress in the Muslim world has 

been tortuously slow. Islamic nations reel under the impact of a 

world economic recession and an increasingly uncooperative 
developed world. These are the realities. Whether we like it or not, 
what others do will affect us. We cannot shut ourselves in as we 
used to do in the days of the camel and the sailing ships. If Islam is 
for all times, then its followers must know how to handle the 
changes that affect us. 

With North-South efforts abandoned, greater effort must be 
made for the implementation of a network of cooperation among 
member states of the OIC and other developing countries. While 
this will take time to materialise, it is important that a start should 
be made now. 

In the eyes of Allah Subhanahu Wataala, all Muslims are equal. 
If they differ it is only in the degree of their submission to the will 
of Allah. In the affairs of the Muslim world, all Muslims have equal 
right to be concerned and to act. No particular race or nation or 



ethnic group has more right than others when something that affects 
the Faith and the well-being of Muslims is involved. 






24 Islam is Concerned with Justice Everywhere 

There must be lessons from history which can help us overcome 
our present problems; help us achieve greatness again. Indeed the 
Hadith, the true traditions of the Prophet are a part of our historical 
heritage, and are meant to guide us. But we frequently ignore them 
in favour of our ambitions and passions. 

If the Muslim world was before like a meteor containing within 
it the human treasury of knowledge, the wisdom and insights that 
have made permanent contributions to the betterment of mankind, 
today it is weak and divided. The spirit of Islam is missing. Unity 
and brotherhood are largely absent. We are left only with the rituals 
in most cases. 

That the machinations of the outside powers have resulted in 
the appearance within our midst of the State of Israel intended to 
permanently drive a stake into our hearts is undeniable. It is equally 
undeniable that our eclipse came also from our own weaknesses as 
we let our ambitions and passions take over. Driven by doctrines 
alien to us, we have built walls around ourselves so that our 

common faith, Islam, can no longer penetrate and bring us together. 
We fight wars and ferment revolutions and interfere in the affairs of 
our Islamic neighbours in furtherance of our ideology or the needs 
of our mentors. 

The Conference of Heads of States and Heads of Government 
of Islamic countries is the supreme gathering of the Muslim world. 
It must be here that we ponder and deliberate over problems and 
issues by falling back on the essence of our faith for the further 
progress of the Muslim world and Ummah. If we meet in a 
salubrious surrounding such as this only to repeat yet again the 
points we made at the General Assembly of the United Nations or 
the Non-Aligned Movement, it will all add up to a wasteful and 
futile exercise. It pains us to have others outside our fold talk with 
derision of our fractious gatherings, all sound and fury from which 
emerge little that is of consequence. 

The world around us has changed tremendously, due in some 
measure to the enlightenment that Islam brought to the world in the 






3- Islam is Concerned with Justice 



Everywhere 



(*) 






Our gathering is essentially different from meetings of other 
fora. Though many or even all of us belong to other groupings, our 
congregation in this manner every 3 years, while representing a 
community of nations is also a meeting of the Islamic Ummah in 
consonance with the injunctions of our holy religion, Islam. While 
we are Kings, Presidents and Prime Ministers, we are all faithful 
servants of Allah, and in accordance with the teachings of the 
religion of Allah, we must try, despite our human frailties and 
weaknesses, to common good of the Islamic Ummah. The mantle 
of power that all of us wear as leaders in our own countries is but 
nothing before Allah if it is not used for the betterment of the 
Islamic world and the Ummah. 

The Islamic World may be fragmented into numerous political 
and ethnic entities but the brotherhood of the Ummah must and 
should transcend these divisions. For good or for bad, the 900 
million Muslim Ummah impacts upon the world at large. Our 
issues have become issues of world concern. Our wars have 
threatened the fabric of international peace. Whether we like it or 
not, we are as accountable to humanity as we are to the Ummah. In 
the eyes of Allah this is as it should be, for Muslims are as much 
the custodians of this world as are the others. 

We can speak of the past glory of Islam, but really this is an 
admission of our present decline. The past is irrelevant and 
meaningless unless it teaches us the way out of our present failures. 



(*) A speech at the 5th. Islamic Summit. Kuwait, 28.01.1987. 




the Quran. They often read the verses partially, ignoring the 




Unity in the Face of Challenges and Threats 



context, the parts which qualify the injunctions in the main parts of 
the verses. 

Very often we miss completely the message, focusing on the 
form instead. Thus when we are asked to prepare war-horses so as 
to deter and defeat the enemy, it is not deterring and defeating the 
enemy that we take note of. It is the keeping of horses. Similarly 
when making judgement, it is not justice that we seek to achieve, it 
is the process of making the judgement. If the process is followed 
then even if injustice is the result, we believe we have followed 
what our religion enjoins upon us to do. We ignore completely the 
injunctions of the Quran that stresses making judgement with 
justice. And because we ignore this stress on justice enjoined by 
Islam, we create an image of Islam that is uncaring and unjust. 

I will not cite more cases of the misinterpretation and deliberate 
ignoring of the teachings of Islam. It is because of this that Muslims 
of today are backward, lacking in knowledge, unable to defend 
themselves and their religion, and forced to resort to terror in order 
to seek revenge. How long can we go on doing this ? Will what we 
are doing today restore the greatness of our religion and the fitrah 
that it should be to mankind ? Will it deliver us from oppression by 
our detractors ? 




Frankly I don't think so. It is not because we are incapable of 
developing ourselves to the level where others would be forced to 
respect us and our religion. It is simply because we refuse to adhere 
to the true teachings of Islam and to strive to better our lot on this 
earth as much as we prepare for the life in the hereafter. We pray 
for hassanah in this world and for hassanah in the akhirat but we do 
nothing beyond merely asking Allah to help us in this world, and in 
the next. We ignore the Quranic injunction that Allah will not 
change our fate unless we strive to change it ourselves. And so we 






of Muslims if they are meant to behave not as brothers ? If 
Muslims are expected to behave as enemies of each other then 
Allah would not declare that all Muslims are brothers. 

Peace and the brotherhood of Muslims are fundamental 
teachings of Islam, If we uphold this fundamental injunction of 
Islam alone, there will be Muslim unity and they will be strong. 
The Muslims were not meant to have countries and to be divided 
according to race or nation. They were, everyone of them members 
of the great Muslim community, the ummah. But now the Muslims 
have divided themselves into different states and their loyalty to 
their state is more than to Islam. In the pursuit of the interests of 
their respective countries, they are quite prepared to fight their 
Muslim brothers from other countries; they are quite prepared to be 
divided, to join opposing camps, even those of their non-Muslim 

enemies. 

They are already weak. Divided they are weaker. Unable to 
protect themselves from other Muslims and from other enemies 
they allow themselves to be manipulated against their co- 
religionists. They become pawns in the games other people play. 
Truly they have lost self-respect. Truly they are not following the 
teachings of Islam. Blaming others for our sad fate may only be 
partially correct. But there is very little we can do to get others, our 
enemies, to cease oppressing us. On the other hand if we blame 
ourselves there is something that we can do to overcome our own 
faults and weaknesses. It is therefore much better if we look for and 
recognise our own faults. 

Muslims must surely know what is it that they are doing which 
is wrong. Certainly their disunity, their rejection of Islamic 
brotherhood is wrong. They do not have the right priorities either, 
emphasising the avoidance of minor sins while openly committing 
major sins. But beyond that, they have often deliberately, ignored 
or misinterpreted much of the basic teachings, the clear verses in 





18 Muslim Unity in the Face of Challenges and Threats 




What is the most fundamental teaching of Islam ? It is that Islam 
means peace. We greet each other with the wish for peace. Is it just 
an empty greeting which we do not mean or is it that we wish for 
peace because we really want peace ? If we want peace then 
shouldn't we strive for peace, at least among ourselves as Muslims 
first, and then with people of other faiths ? 

The Quran states that all Muslims are brothers. Apart from 
Islam advocating peace, surely brothers must not fight each other. 
Brothers should love each other, being as they are of the same 
family. Brothers should be united. That is the basic teaching of 
Islam. There can be no dispute about this injunction of Islam, no 
difference in the interpretation of this teaching. 

But Muslims do try to negate even this clear teaching of Islam. 
They are fond of declaring that other Muslims are not true 
Muslims; in fact they are infidels because they believe in different 
Imams, belong to different Mazhabs or sects, being Sunni or Shiah, 
followers of different tarikats etc. Far from accepting all Muslims 
as their brothers they adopt dress codes which differentiate them 
from other Muslims whom they condemn as being less Muslim for 
not wearing their dress. But the Quran is explicit as to who is and 
who is not a Muslim. According to the Quran a Muslim is one who 
"bears witness that there is no God but Allah and Muhammad is 



His Prophet." Even if he or she commits sins, big or small, he or 
she remains a Muslim for as long as he or she "bears witness to 
Allah as the only God that is worshipped and that Muhammad is 
His Profphet". 

So all the Muslims, all those who bear witness to Allah as the 
only God that they worship and that Muhammad is His Prophet 
must be brothers, must be at peace with each other and must be 







Muslim Unity in the Face of Challenges and Tlireats 17 

terrorism. Many believe they have been successful in this. But what 
have the Muslims really gained by these acts of terror ? All that has 
happened is that the enemies of Islam have found justification for 
putting more pressure on the Muslims, attacking and killing them, 
treating them and their religion with contempt. 

Muslims fight and die not in order to achieve any real 
objective, to free themselves from oppression for example. They 



take 



to vent their anger. 




Muslims seem not to plan or strategise. Even their terror attacks 
seem to be random attacks, isolated and uncoordinated. Everyone 
of them seems to be acting on their own. If they plan it does not 
seem to be coordinated, nor to advance their cause. Apart from 
making their enemies angry and providing excuses for them to 
retaliate, nothing which can contribute towards ultimate Muslim 
success or victory has been achieved. 

The Muslims have clearly lost their way. There is a 
saying in Malay that when you lose your way, you must return to 
the beginning and start again. With so many contradictory 
interpretations of Islam over the last 1400 years, most of us 
have become so confused that we really do not know whether 
we are right or wrong, whether we are taking the right path 
or not, whether indeed we are following the teachings of Islam. 
Certainly we are nowhere near achieving the greatness that was 
once for Islam. If at all, we seem to be slipping further and further 
away from it. 

Since we are so confused and divided because of the varied 
interpretations and teachings of Islam, we should really return to 
the fundamentals of Islam, to the original teachings of the Prophet, 
to the Quran and the verified Hadiths, especially those which are 
clear and indisputable and not subject to different interpretations. 







16 Muslim Unity in the Face of Challenges and Threats 



In Malaysia one political party has convinced its followers that 
anyone not joining or supporting it is not a Muslim. Tens of 
thousands of Malay Muslims believe this, believe even that voting 
for this party in elections will guarantee a place for them in heaven. 
It sounds ridiculous except that the followers are deadly serious in 
their acceptance and belief, and in their enmity towards those who 
do not join this party or vote in elections for it. There is now a deep 
split among the Muslims of Malaysia, caused by Muslim politicians 
abusing the teachings of Islam. 

Because of the thousands of different interpretations of Islam 

and very many different sects, each claiming to be the true 

followers of Islam, the Muslims are thoroughly confused. They are 

even more confused because they are told that the door of Ijtihad or 

interpretations of Islam is closed and they must accept anything that 

had been interpreted long ago. Yet the very people who tell us that 

we may not reexamine and reinterpret Islam are themselves making 

new interpretations every day. And their interpretations are meant 

only to enhance their position in the community, to ensure support 

for their politics. The result of this confusion is a deeply divided 

ummah, prone to disputes and to fighting each other. They are less 

interested in defending themselves against the professed enemies of 

Islam than they are in opposing other Muslims. That these conflicts 

among Muslims will only weaken the Muslims is totally ignored by 
them. 

Disunited, confused about Islam, fighting each other for power, 



and 



Muslims 



in their development. Still they go on doing what is prohibited by 



are 



deviated 



the teachings of Islam. They continue to reject the brotherhood of 



Muslims 





Muslim Unity in the Face of Challenges and Threats 15 




arrows and other weapons, we have to develop and acquire skills to 
make modem weapons. 



Why 



fundamental 




of Islam. In telling us that science and technology are secular 
subjects which will not earn us merit in the afterlife, they are 
discouraging Muslims and their societies from fulfilling the 
injunctions of Islam to be equipped with the means of defending 
ourselves and to deter the enemy. During the glorious years of the 
Muslim civilisation we were not oppressed. Muslims were 
respected and feared. That was because Muslim countries were 
strong militarily and economically, and advanced in the sciences. 
Europeans had to learn from Muslims new knowledge as well as 
those of the Greeks and others, which the Muslims had studied, 
translated into Arabic and enhanced. 

We all know that the Prophet S.A.W. brought only one Islam. 
The Islam that he received from Allah S.W.T. is only one. But 
today there are many Islamic sects. There are the Sunni and the 
Shiah, each divided into numerous groups by the different Imams 
and Tarikats. Had Allah S.W.T. wanted us to have all these sects 
then the Prophet would have conveyed this to the first Muslims, 
would have taught Sunni Islam, Shiah Islam etc. But we know that 
during his 23 years of teaching Islam, he did not speak about Sunni 
or Shiah or the various tarikats. All these divisiveness in Islam 
came only after he had passed away. They are the results of 
differing interpretations about Islam by different scholars through 
the centuries. 

Some of these interpretations and teachings are so different 
from each other that their followers actually accuse each other of 
not being Muslims. Indeed they regard many who profess to be 
Muslims as infidels. Thus Sunni Muslims regard the Shiah as 
infidels and vice versa. 





14 Muslim Unity in the Face of Challenges and Threats 

Empire and civilisation in history. Clearly the Prophet did not 
believe that for the Muslims this world is not important, or that life 
on earth is only for the infidels. He not only believed that Muslims 



share of Allah *s bounties on earth 



Allah 



"Kun, Fayakun" "Be, and it shall be" but Allah left His messenger 
to struggle and fight to spread Islam and to gain for the Muslims 
their share in this world. So the idea that we must suffer in silence 
and await our heaven in the next world is not Islamic. In fact it goes 
against the Sunnah of the Prophet. The Quran enjoins upon us to 

- with 



arms 



and 



have war-horses then we have fulfilled our obligations. But what is 



arrows. What 



is to deter and defeat our enemies. And to do this today we need 
guns and rockets, warships and warplanes, armoured cars etc. We 
cannot depend on others to supply us with these things forever. 




least of all by those who are opposed to us. We need to invent, 
design, produce and test our own weapons of defence. To do this 
we need to have scientific and technological knowledge and skills. 
Those who learn science, mathematics and acquire technological 
skills are therefore obeying and fulfilling the injunctions of Islam. 
Those who prevent them from studying these subjects by saying 
that only learning religion will earn us merit are in fact going 
against the teachings of Islam for they weaken the Muslim ummah 
and prevent them from putting fear in the hearts of the enemies of 
Islam and becoming able to defeat them. These people who prevent 
Muslims from having their own capacity to protect themselves are 
actually helping the oppression of the Muslims. 

Our enemies will always attack us because we are weak. They 
will only cease to do so if we maintain a strong enough defence 



capability. This is the Sunnah of the Prophet. Just as the followers 
of the Prophet had to develop and acquire skills to make bows and 







2- Muslim Unity in the Face of Challenges 

and Threats ^*^ 





There has never been a time when the Muslims are so looked 
down upon, so treated with disrespect and so oppressed as they are 
today. Everywhere Muslims are bullied, detained, bombed and 
massacred with inpunity. The Muslim countries are unable to do 
anything to defend themselves and their people and fellow Muslims 
anywhere. Some Muslim countries actually appear to be 
collaborating with the oppressors of Muslims. Many Muslims try to 
explain the sad plight of the Muslims by saying that this world is 
not for us. For us a place in heaven has been reserved. In the next 
world the enemies of Islam would be punished and thrown into 
hell, because of what they do to us in this world. 

Is this truly what Islam teaches us ? Did the Prophet S.A.W. 
accept his persecution because his place in heaven has been 
assured ? Did he relish the fact that his Quraish persecutors would 
end up in hell ? What would have happened to the spread of Islam 
if the Prophet had not struggled against his enemies, dispatched his 
early followers to safe havens, migrated to Madinah to build up the 
strength of the Muslims, increasing their numbers in order to fight 
back ? If he had retreated to await his reward after death, we would 
have not been Muslims today. 

And we know that in the end he defeated his enemies and was 
able to spread Islam throughout the world, to build the greatest 

(*) A speech at Al-Azhar University. Cairo, Egypt, 21.01.2003. 





Against Violence and War 11 




(8) The situations in Iraq and Palestine are linked. The Middle 
East cannot be stabilised merely by attending to the Iraqi problem 
alone. Indeed the war against Iraq is likely to worsen the Middle 
Eastern situation and the terrorist problems of the world. Rendering 
Iraq totally defenceless and ensuring easy victory will not make the 
war any more acceptable to Muslims. Of course permitting Israel to 
carry out terror attacks and remain in possession of nuclear 
weapons and threatening to use them will only anger Muslims more 
and increase recruits for terror attacks. It is for this reason that 
Malaysia is convinced that the causes of the situation in the Middle 
East must be carefully analysed so as to formulate a better strategy 
for a more acceptable result, 

(9) At this crucial and challenging time, Muslim countries must 
close ranks and be willing to work together to prevent war against 
Iraq and to help the Palestinians. For too long, we have been 
marginalised while important decisions affecting the Muslim 
Ummah have been decided and imposed upon us from the outside. 
The QIC's voice has not been shown due consideration because we 
have failed to speak with one voice. 

(10) During the Informal Consultation in Kuala Lumpur, we 
have tried to identify the weaknesses and the strengths of the OIC. 
What remains for us is to formulate a strategy that takes into 
consideration these factors. If we cannot agree on even this need to 
think out our strategies then we must accept marginalisation as our 
lot all the time* 






10 Against Violence and War 

(4) Malaysia is encouraged by the decision of Iraq to fully 



UNMOVIC and 



UNMOVIC 



assumed 



must then refuse to sanction war against Iraq. It is not acceptable 
that if no weapons are found then it must be because Iraq is hiding 



UNSC 



UNMOVIC 



had 



We 



in Palestine. Israel is using the excuse of the fight against terrorism 
after September 11 to conduct terror attacks against the 
Palestinians. Since the beginning of the Intifada in September 2000, 
more than 2,800 Palestinians including children have been killed 
and more than 43,000 were wounded. The bulldozing of Palestinian 
houses in order to kill the famiUes of suspected terrorists is totally 
immoral. The Jews who suffered so much during the Holocaust 
should know the suffering that they are causing. World Jewry must 
persuade Israelis to stop the killing of Palestinians. Only then can 
we expect Palestinians not to retaliate in kind. 

(6) We welcome the efforts of the "Quartet Mediators" in 
drawing a Road Map for Israeli withdrawal from the West Bank 
and the establishment of an independent Palestinian State by the 
year 2005, It is frightening that Israel should be allowed to ignore 
world opinion while others may not, 

(7) In the search for a peaceful solution, the Muslim countries 
have already made a great concession by agreeing to recognise the 
state of Israel in return for Israel's acceptance of an independent 
state of Palestine. Since it was the western countries, which created 
Israel, they must now exert pressure on Israel to accept the Road 
Map and to stop the senseless killings of innocent Palestinians. To 
do this Malaysia maintains that a U,N. Protection Force is urgently 
required. 





1- Against Violence and War^ 



=) 




Summit 



•Aligned Movement (NAM) 



Informal Consultation of the OIC Leaders. During those meetings, 
we discussed and exchanged views on, among others, challenges in 
the global environment against the backdrop of the worsening 
situation in the Middle East, The NAM Summit adopted two 
declarations on Iraq and Palestine respectively. The Informal 
Consultation among OIC Leaders also discussed these two same 
issues. The two meetings in Kuala Lumpur sent a very clear 
message - we are opposed to war against Iraq and we call for a 
speedy solution to the Palestinian problem, 

(2) As we meet today, worldwide opposition against war in Iraq 
continues to be strongly demonstrated. Unfortunately, short of a 



take 



We 



make 



particular 



Iraq. 



(3) Malaysia remains committed to the fundamental principle 
of non-use of force in solving conflicts between nations. Malaysia 
is also opposed to the possession or use of weapons of mass 
destructions by everyone, without exception. And Malaysia is 
certainly against unilateral action. In keeping with these stand, 
Malaysia fully supports the initiatives taken by several members of 
the UNSC to extend the timeframe for UNMOVIC and lAAE to 
complete their inspection in Iraq. 



(*) A speech at the extraordinary Islamic Summit Session of OIC. Doha, Qatar 
05,03.2003. 






I. ISLAMIC ACTION 






VI. THE UNITED NATIONS : 

15. The 43rd Session of the UN General Assembly. 

16. The 41st Session of the UN General Assembly. 



VII. MISCELLANEOUS TOPICS : 

17. Trust and Governance for a New Era. 

18. Biodiversity. 

19. The 8th Asean-EC Ministerial Meeting. 

20. Regionalism, Globalism and Spheres of Influence : 
Asean and the Challenge of Change into the 21st. 
Century. 

2 1 . The Commonwealth Heads of Government Meeting. 

22. The Global Economic Crisis : Will 1988 be Another 
1928? 

23 . Drug Abuse and Illicit Trafficking. 

24. The Inter- Action Council. 

25. Holier Than Thou — a Mild Gitique. 



121 
123 
137 



153 
155 
161 
167 



175 
189 



195 
207 
215 
221 






Index 



237 






Contents 




I. ISLAMIC ACTION : 

1 . Against Violence and War. 

2. Muslim Unity in the Face of Challenges and Threats 

3. Islam is Concerned with Justice Everywhere. 



Page 

7 

9 

13 

23 



II. NON-ALIGNED MOVEMENT 

4. Revitalising NAM. 

5. The Future of NAM. 

6. Is NAM a Moving Force ? 



29 
31 
41 

49 



III. MALAYSIAN INVESTMENT ENVIRONMENT 

7. With American Businessmen. 

8. Malaysian-Arab Trade & Investment Conference. 

9. Investment in Malaysia. 



59 
61 
67 
71 



IV. THE SOUTH-SOUTH RELATIONS : 

10. Consultation and Cooperation. 

1 1 . The South Commission. 

12. The South-South 11 Conference. 




V. PARLIAMENTARY MATTERS : 

13. The Asean Inter-Parliamentary Organisation, "AIPO". 

14, The 33rd Commonwealdi Parliamentary Conference. 



79 
81 
89 
95 



107 
109 
U5 





Contemporary Sssues 









Dn Mahathir Bin Mohamad 

Prime Minister Of Malaysia 



Translation & Revision 

A commitiee of Drs. & Profs. From 

universities of Cairo, Alexandria, 

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Dr. Abd El Rahman El Sheikh 

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Dr. Ramadan Bastawisi 

Dr. Yasir Shaban 

Prof. Ahmed Mahmoud 

Prof. Ahmad Abd El Hamid 

Prof. Faiouk Lokman 

Prof. Abd EL Hamid Dabouh 

Prof. Mohamad Rushdy 

Pit)f, Talaal El Shayeb 

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Encyclopedia 

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